Theranos CEO and Founder Elizabeth Holmes.
With blood tests and medical devices, potential federal sanctions, a criminal investigation, invalid patient reports, and potential class action lawsuits, Theranos has taken quite a beating.
On Wednesday, Forbes placed dollar values on that hit. The business magazine reported that the company’s valuation — based on “a dozen venture capitalists, analysts and industry experts” — has been downgraded from its 2014 estimate of $9 billion to just $800 million now. And because Forbes’ valuation of Theranos CEO and founder Elizabeth Holmes was based solely on her 50 percent stake in the company, their estimate of her net worth dropped from $4.5 billion to “nothing.”
In 2015, Forbes ranked Holmes as the number one self-made woman in America.
In a statement, Theranos spokesperson Brooke Buchanan fired back at the new valuations, saying, “As a private company, we declined to share confidential information with Forbes. As a result, the article was based solely on speculation and press reports.”
Forbes gave three reasons why Theranos has lost value: Too many questions remain about the work; it has been unable to provide data on its tests and machines; and it is unlikely to surpass its competitors.
“[G]despite the difficulties at Theranos,” Forbes concluded that “Holmes falls off FORBES’ list of America’s Richest Self-Made Women and all other wealth lists.”