So after the whole Volkswagen scandal, now the science and technology sector has its own “caught cheating” story as well. This time it’s the turn of Theranos – a medical diagnostic company whose technology and founder have been much lauded in the media and held up as exemplars of technological innovation and progress.
Based upon some investigative journalism by the Wall Street Journal, which includes information disclosed by Theranos employees and others with inside knowledge of the secretive company’s workings, it seems that Theranos is for the most part, using other companies’ technologies for the great majority of its diagnostic blood tests, and may even have done so in order to duplicitously win FDA approval for its own much lauded but never publicly disclosed, diagnostic technology – the same proprietary technology that underpins the company’s $9 billion valuation.
In the world of technology and medicine, it is perhaps no surprise that there are always some with serious skin in the game, who are not above resorting to hype, exaggeration and outright dishonesty where there’s money at stake. The startup world is certainly no stranger to this – and now it looks like Theranos has been caught cheating in order to advance its own blood test technology, while trying to hide this from regulatory agencies and investors in a cover-up that has some parallels with the Volkswagen scandal.
Perhaps even more interesting though, is that these kinds of problems seem to be exacerbated by the cult of celebrity that surrounds those who are perceived to be the movers and shakers of the startup world. Had Theranos founder Elizabeth Holmes not been put on such a high pedestal by her investors, peers and the press, it is interesting to wonder whether she might not have been taken to task much earlier for refusing to scientifically substantiate the efficacy and accuracy of her company’s proprietary diagnostic technology.
Even in the dry and ‘objective’ world of science and technology, people still seem to need to create heroes and to build a kind of mythology around them and their work, however disconnected the stories are from the reality.
As this Wired article points out, when this kind of bubble of delusion and deception gets built around something like a social network startup, what stands to be lost is mostly money. That’s already bad enough, but when the company in question has a hand in your healthcare, what’s at stake could be much, much more serious.
Image courtesy of PostMemes
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