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Walgreens and Theranos Partnership on the Rocks

By Kanika Gupta | Update Date: Feb 12, 2016 10:08 AM EST

The largest drugstore chain in US, Walgreens Boots Alliance Inc. has threatened to sack its partnership with Theranos Inc. unless the company specializing in blood-testing doesn't quickly fix the issues reported by federal inspectors at its California lab, reported the Wall Street Journal. Late last month Walgreens issued a warning in a letter to the blood-testing company, confirmed the people familiar with the matter. Walgreen spokeswoman declined to comment on the matter.

The laboratory services offered by Theranos in partnership with Walgreens has been suspended on January 28th following the U.S. Centers for Medicare & Medicaid claim that the poor practices followed by Theranos at its Newark Lab posed "immediate jeopardy to patient health and safety". Theranos gained a lot of negative publicity after the Wall Street Journal report suggested that the blood-testing devices are not accurate that produce flawed results.

Theranos wellness centers, 40 of them, located in the Walgreens stores in Arizona are one of the leading revenue sources for the company and also acts as the most potent channel to reach the customers. However, this partnership is threatened by the latest reports and Walgreens is already negotiating its future with Theranos since the article published in Wall Street Journal in October, as reported by Reuters.

The two companies entered in a partnership with plans to offer blood tests all across the country with its more than 8,000 stores. However, the drugstore chain has stalled the expansion plans and stopped sending the blood samples of their patients to Theranos lab, putting a question mark on its relationship with the company. The two companies are still in talks, confirmed inside sources. Theranos claims that the findings of the inspection do not "reflect the current state of the lab." Theranos did not comment further on the matter, as reported by Market Watch

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