Back in 2014, I came across a TED Talk featuring a young woman speaking about performing blood tests with a single drop of blood. Not just a couple tests but as many as 200 unique tests, all from a single drop of blood. The claim seemed extraordinary, but admittedly, my knowledge of blood testing and microfluidics is not vast, so I took the video at face value. Surely, the folks at TED Talk vetted individuals they have speak at their events, right?

Seems that type of assumption is just a part of the Theranos story. Surely, someone has to know what’s going on and there’s real science behind this. This just sounds like an unbelievable innovation because that’s what invention is—the creation of something new, often previously not thought possible or envisioned.

Hulu recently launched its new miniseries called “The Dropout,” a reference to the Theranos’ founder’s early departure from Stanford. The eight-episode series tells the life of Holmes with glimpses of her childhood and pre-Theranos days, but gets into the meat of the story—the rise and fall of her company—quickly.

There’s been much written about Theranos and Holmes by me, colleagues, and others covering the medical device industry. “The Dropout” brings this story to “the masses” who (surprising to me) aren’t at all familiar with the tale, the name Theranos, or Elizabeth Holmes (ascertained via anecdotal evidence anyway). That said, I couldn’t help but absorb every single episode, even though I knew essentially what was coming in most cases.

Hollywood sometimes takes creative liberties with “based on a true story” tales, but if even half of what was revealed in this series was true, Holmes should be viewed as, at best, criminally liable, and, at worst, an awful human being. Professional and personal partner Ramesh “Sunny” Balwani isn’t much better. Between the two of them, I can’t believe for a minute they weren’t completely aware of the deception taking place and were likely complicit (if not orchestrating it completely).

Like any good story there are heroes and villains, and this one is no different. The villains aren’t, however, serving up poison apples or evil magic. Rather, they dole out deception, lies, and manipulation. While this is true of Holmes and Balwani, they are hardly the only guilty parties. There are a number of less than admirable characters presented. Richard Fuisz is a family friend who wants to get in as an early investor, but Holmes turns him away. After that, he’s intent on bringing her down, but not because she’s selling snake oil; rather, pride drives his contempt and desire to crush her company. Noel Holmes, Elizabeth’s mother, is presented as a woman giving a masterclass on how not to raise a child. She comes across as so awful, there are moments you actually feel sympathy for Elizabeth.

Fortunately, the heroes are equally numerous. And like any good tale, they are up against significant odds. Two of the more well-known are Tyler Shultz—grandson of former Secretary of State George Shultz, who was also a Theranos director—and Erika Cheung, a laboratory worker who uncovers all is not as it seems at the testing firm. The two combined to share information about their discoveries with a Wall Street Journal reporter who penned a number of articles about the company and its leadership. Another noteworthy protagonist was Dr. Phyllis Gardner, a Stanford professor who Holmes approached early on with her testing idea. She helped bring the fraud to light, albeit positioning her awkwardly with Fuisz to do so.

And as if taking a page from Shakespeare himself, the story even has its fool (again, as presented in the series). This role is filled by Jay Rosan, a Walgreens exec who pushed hard for the deal between the pharmacy and Theranos. He looked past recommendations to inspect the laboratory and testing technology at the company to guarantee an agreement could be reached.

I’ve been told the story of Theranos isn’t a cautionary tale for medtech or its typical investment partners. Rather, it brings to light what could happen when those unfamiliar with the industry or how it operates get involved. Virtually all the investors and members of the board were not affiliated with the medical device manufacturing community. Some were politicians, others tech leaders, and still others financial wizards who made their money from different industry sectors. It illustrates what happens when Silicon Valley treats medtech like any other industry and when those running the company attempt to deceive those same investors.

Regardless, those within medtech should enjoy the ride of “The Dropout” even if they are already familiar with much of the story. It is absolutely worth watching.

If for no other reason, watch for Ian. Oh, poor Ian. 

Sean Fenske, Editor-in-Chief
sfenske@rodmanmedia.com