Ponder the fleeting nature of fortune. Last fall, Theranos CEO Elizabeth Holmes, 32, was deemed the “youngest self-made female billionaire” in the world by Forbes magazine. Her net worth today? Bupkis.
The New York-based business publication last fall estimated the embattled CEO's net worth at $4.5 billion, which placed her No. 5 among U.S. healthcare billionaires. Forbes said last week that its estimate of the entrepreneur's net worth is entirely based on her 50% stake in Theranos, the lab startup she founded in 2003. The company has since faced allegations that its tests are unreliable, followed by investigations by a number of state and federal agencies.
A source told Forbes that Theranos' revenue is less than $100 million, and an analysis led Forbes to believe that Theranos is likely valued at $800 million, way below the $9 billion it was believed to be worth in 2014. Walgreens and grocery chain Safeway have restricted or canceled major relationships.
“At such a low valuation, Holmes' stake is essentially worth nothing,” Forbes Editor Matthew Herper wrote.
CMS inspectors found five deficiencies at Theranos' Newark, Calif., lab, some that posed “immediate jeopardy to patient safety and health.” The Wall Street Journal, which initially revealed Theranos' blood test woes, reported that the company told regulators it voided two years of tests because of erroneous results.
