“FIRST they think you’re crazy, then they fight you, and then all of the sudden you change the world,” said Elizabeth Holmes as troubles mounted for her blood-testing startup, Theranos, last year. Things look ever less likely to go beyond the fighting stage.

On July 7th a government regulator, the Centres for Medicare and Medicaid Services, said Ms Holmes would be barred from owning or running a laboratory for two years. It will also revoke her company’s licence to operate one of two laboratories where it conducts tests. As The Economist went to press the firm was due to reply to a letter from Congress, which asked how, exactly, Theranos is going to handle the tens of thousands of patients who were given incorrect test results. Even so, Ms Holmes looks set to remain in position even as the situation deteriorates around a firm that once commanded a multi-billion-dollar valuation.

These may be some of the last twists in a story which will be turned into a Hollywood film by the director of “The Big Short”. Theranos’s troubles began last year when the Wall Street Journal...Continue reading