Jan 18, 2017

Exclusive: Theranos 2006 pitch deck

Long before Theranos became the poster child for Silicon Valley hubris, it was just a promising young startup in search of investors. Axios has obtained a confidential pitch deck from June 2006, when the blood-testing company was seeking $30 million for what it referred to as a "pre-IPO transaction."

Some highlights:

  • Theranos says its accuracy is comparable to "gold standards"
  • The business model seems to have been aimed at clinical and preclinical trials for pharma companies, rather than at broader consumer market.
  • Early investors included Victor Palmieri, a financier who helped sell Donald Trump what would become the Grand Hyatt in New York City.

Theranos would raise the money, and just two years later would be valued by investors at $9 billion. Since then, however, it's been almost all downhill. The first crack appeared in October 2015, when the Wall Street Journal reported that Theranos was not actually using its own technology to conduct most of its own blood tests. Subsequent stories would question the accuracy of Theranos blood tests, conditions of its labs and what it told business partners like Walgreens (which is currently suing the company for breach of contract). Federal regulators also would step in, ultimately banning Theranos founder and CEO Elizabeth Holmes from owning or operating a blood-testing lab.

But Theranos does still have at least one big defender in Tim Draper, who was one of the company's earliest investors. Here's his interview with Axios.

Go deeper

Blue Cross Blue Shield insurers sue CVS, alleging drug pricing fraud

Photo: John Lamparski/SOPA Images/LightRocket via Getty Images

Six Blue Cross Blue Shield insurers have sued CVS Health, alleging the pharmacy chain overcharged them based on "artificially inflated prices" for generic drugs and concealed the true cash prices of those drugs.

The big picture: CVS has faced legal scrutiny over its cash discount programs since 2015, and this lawsuit adds big names to a mounting problem.

World coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Axios Visuals

New Zealand has only eight active novel coronavirus cases and no COVID-19 patients in hospital after another day of zero new infections. However, the death toll rose to 22.

Zoom in: A top health official told a briefing a 96-year-old woman "was regarded to having recovered from COVID-19 at the time of her death, and COVID-19 is not recorded as the primary cause of her death on her death certificate." But it was decided to include her in the overall tally of deaths related to the virus.

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 10 p.m. ET: 5,690,951 — Total deaths: 355,575 — Total recoveries — 2,350,071Map.
  2. U.S.: Total confirmed cases as of 10 p.m. ET: 1,699,073 — Total deaths: 100,396 — Total recoveries: 391,508 — Total tested: 15,192,481Map.
  3. Public health: CDC issues guidelines for reopening officesFauci says data is "really quite evident" against hydroxychloroquine.
  4. States: California hospitals strained by patients in MexicoTexas Supreme Court blocks mail-in expansion to state voters.
  5. Business: MGM plans to reopen major Las Vegas resorts in June — African American business owners have seen less relief from PPP, Goldman Sachs says.
  6. Tech: AI will help in the pandemic — but it might not be in time for this one.
  7. World: EU proposes a massive pandemic rescue package.
  8. 1 🎶 thing: Local music venues get rocked by coronavirus.
  9. 🎧 Podcast: Trump vs. Twitter ... vs. Trump.
  10. What should I do? When you can be around others after contracting the coronavirus — Traveling, asthma, dishes, disinfectants and being contagiousMasks, lending books and self-isolatingExercise, laundry, what counts as soap — Pets, moving and personal healthAnswers about the virus from Axios expertsWhat to know about social distancingHow to minimize your risk.
  11. Other resources: CDC on how to avoid the virus, what to do if you get it, the right mask to wear.

Subscribe to Mike Allen's Axios AM to follow our coronavirus coverage each morning from your inbox.

Updated 3 hours ago - Politics & Policy