Walgreens’ partnership with Theranos seemed like such a good idea at the time — pairing a seemingly revolutionary blood testing technology business with a retailer keen on transforming itself into a new kind of healthcare provider. Although Walgreens’s work with several digital health partners is aiding this transformation, Theranos has proven to be more of a cautionary tale in health tech investment for the retailer and other companies.
With the Rise of AI, What IP Disputes in Healthcare Are Likely to Emerge?
Munck Wilson Mandala Partner Greg Howison shared his perspective on some of the legal ramifications around AI, IP, connected devices and the data they generate, in response to emailed questions.
In the latest development, Walgreens has filed a complaint against the diagnostic business in Delaware Federal Court suing the company for $140 million, according to The Wall Street Journal. The move comes one month after another investor filed a complaint against Theranos — Partner Fund Management.
Walgreens alleges that Theranos misled the Deerfield, Illinois-based retailer about the state of its technology when the two companies inked their collaboration deal, the article noted. Although the lawsuit is under seal, the paper cited people familiar with the complaint.
The action by Walgreens comes less than five months after the retailer ended its contract with Theranos. In June, Walgreens terminated a deal that shut down 40 Theranos Wellness Centers in the drugstore retailer’s Arizona stores. Prior to that, Walgreens had halted the use of Theranos testing services in California in January.
Partner Fund Management filed a lawsuit against Theranos in Delaware Court of Chancery. The firm, which invested $96.1 million in Theranos in 2014, maintained that Theranos had misled and lied to Partner Fund Management and accused the blood testing company of securities fraud.
A Personalized Approach to Medication Nonadherence
At the Abarca Forward conference earlier this year, George Van Antwerp, managing director at Deloitte, discussed how social determinants of health and a personalized member experience can improve medication adherence and health outcomes.
Theranos declined to comment on the Walgreens suit, according to the Journal article.
Photo: zimmytws, Getty Images
