Advertisement
Not a member of Pastebin yet?
Sign Up,
it unlocks many cool features!
- 0
- 00:00:05,000 --> 00:00:15,000
- INDOXXI
- Support dengan like & share :)
- 1
- 00:00:22,542 --> 00:00:24,142
- We've had a great opportunity
- 2
- 00:00:24,208 --> 00:00:25,810
- in asking so many people
- so many questions
- 3
- 00:00:25,834 --> 00:00:28,458
- about things ranging from the future to,
- kind of, advice,
- 4
- 00:00:28,542 --> 00:00:31,125
- and we thought
- we'd ask a few questions
- 5
- 00:00:31,208 --> 00:00:33,959
- that run a little bit
- of a gamut, really quickly.
- 6
- 00:00:34,041 --> 00:00:37,083
- - Mm. Okay.
- - Can you look into the lens?
- 7
- 00:00:37,166 --> 00:00:39,959
- We thought it would
- be interesting to ask you,
- 8
- 00:00:40,041 --> 00:00:41,166
- in the year 2025,
- 9
- 00:00:41,250 --> 00:00:43,959
- what's the thing
- you're most certain about?
- 10
- 00:00:44,041 --> 00:00:50,125
- More people will have access
- to their own health information.
- 11
- 00:00:50,208 --> 00:00:53,083
- What do you dream for?
- Something in 2025?
- 12
- 00:00:53,166 --> 00:00:55,959
- That less people
- have to say goodbye too soon
- 13
- 00:00:56,041 --> 00:00:57,458
- to people they love.
- 14
- 00:00:57,542 --> 00:01:00,458
- That's great.
- Can you tell us a secret?
- 15
- 00:01:06,417 --> 00:01:08,500
- I don't have many secrets. Um...
- 16
- 00:01:25,625 --> 00:01:28,208
- Are you a scientist or a technologist?
- 17
- 00:01:28,291 --> 00:01:29,625
- Or an entrepreneur?
- 18
- 00:01:29,709 --> 00:01:31,625
- I think I'm an entrepreneur.
- 19
- 00:01:31,709 --> 00:01:33,709
- I was trained as an engineer,
- 20
- 00:01:33,792 --> 00:01:36,041
- but... now my time is spent
- 21
- 00:01:36,125 --> 00:01:39,458
- on doing whatever it takes
- to realize this mission.
- 22
- 00:01:40,291 --> 00:01:42,000
- Theranos is the integration
- 23
- 00:01:42,083 --> 00:01:45,041
- of the words
- therapy and diagnosis.
- 24
- 00:01:45,125 --> 00:01:47,375
- And if we can shift
- toward a model in which
- 25
- 00:01:47,458 --> 00:01:50,333
- we're determining
- the onset of disease
- 26
- 00:01:50,417 --> 00:01:52,834
- in time for therapy
- to be effective,
- 27
- 00:01:52,917 --> 00:01:54,834
- we will change outcomes.
- 28
- 00:01:55,625 --> 00:01:58,125
- You founded this company
- 12 years ago, right?
- 29
- 00:01:58,208 --> 00:01:59,667
- Tell 'em how old you were.
- 30
- 00:01:59,750 --> 00:02:02,041
- - I was 19.
- - Yeah.
- 31
- 00:02:05,083 --> 00:02:07,250
- There was never sort of a plan
- 32
- 00:02:07,333 --> 00:02:09,834
- to drop out of Stanford,
- but I found what I loved.
- 33
- 00:02:09,917 --> 00:02:14,208
- I found what I wanted
- to spend my life doing.
- 34
- 00:02:14,291 --> 00:02:17,291
- Elizabeth has raised more than $400 million.
- 35
- 00:02:18,333 --> 00:02:21,500
- The company is
- valued at $9 billion.
- 36
- 00:02:21,583 --> 00:02:24,208
- You own over 50% of it, right?
- 37
- 00:02:24,291 --> 00:02:26,125
- Congratulations on that.
- 38
- 00:02:26,208 --> 00:02:29,417
- We've got an incredible
- opportunity to try to uphold
- 39
- 00:02:29,500 --> 00:02:31,667
- a legacy in Silicon Valley
- of changing the world.
- 40
- 00:02:31,750 --> 00:02:34,333
- And we like to think
- about it as a movie,
- 41
- 00:02:34,417 --> 00:02:38,333
- and you can begin to see
- that story in a better way.
- 42
- 00:02:39,667 --> 00:02:42,250
- We see a world
- in which every person
- 43
- 00:02:42,333 --> 00:02:44,125
- has access
- 44
- 00:02:44,208 --> 00:02:46,625
- to actionable health information
- 45
- 00:02:46,709 --> 00:02:49,083
- at the time
- it matters.
- 46
- 00:02:49,166 --> 00:02:50,667
- A world
- in which
- 47
- 00:02:50,750 --> 00:02:52,375
- no one ever
- has to say,
- 48
- 00:02:53,375 --> 00:02:56,041
- "If only I'd known sooner."
- 49
- 00:02:57,125 --> 00:02:58,959
- A world in which
- 50
- 00:02:59,041 --> 00:03:02,250
- no one ever has
- to say goodbye too soon.
- 51
- 00:03:05,041 --> 00:03:06,959
- This future
- 52
- 00:03:07,041 --> 00:03:09,166
- is beginning now.
- 53
- 00:03:21,792 --> 00:03:24,458
- Nestled in the
- foothills above Silicon Valley,
- 54
- 00:03:24,542 --> 00:03:26,834
- there is a 700-acre
- plot of land
- 55
- 00:03:26,917 --> 00:03:29,500
- called
- the Stanford Research Park.
- 56
- 00:03:29,583 --> 00:03:32,792
- According to the website,
- it's a community of and for people
- 57
- 00:03:32,875 --> 00:03:35,291
- who seek to invent the future.
- 58
- 00:03:35,375 --> 00:03:38,333
- From here came elements
- of the microwave tube,
- 59
- 00:03:38,417 --> 00:03:42,417
- the mainframe computer,
- and the International Space Station.
- 60
- 00:03:42,500 --> 00:03:44,834
- Steve Jobs spent time here,
- 61
- 00:03:44,917 --> 00:03:48,166
- so did Mark Zuckerberg
- and Elon Musk.
- 62
- 00:03:48,250 --> 00:03:51,291
- Elizabeth Holmes saw
- herself in their company.
- 63
- 00:03:51,375 --> 00:03:54,792
- So in the fall of 2014,
- she moved her biotech startup
- 64
- 00:03:54,834 --> 00:03:57,208
- Theranos to the research park.
- 65
- 00:03:57,291 --> 00:03:59,667
- The company
- employed 800 people
- 66
- 00:03:59,709 --> 00:04:03,291
- and was valued
- at nearly $10 billion.
- 67
- 00:04:03,375 --> 00:04:06,667
- Four years later,
- it was worth less than zero.
- 68
- 00:04:09,291 --> 00:04:11,000
- To understand what happened,
- 69
- 00:04:11,125 --> 00:04:13,417
- it pays to look past
- the price of the stock
- 70
- 00:04:13,500 --> 00:04:15,625
- to the value of the story.
- 71
- 00:04:15,667 --> 00:04:19,709
- This compelling tale of divining hundreds
- of diseases from a drop of blood
- 72
- 00:04:19,834 --> 00:04:23,125
- was a testament to the
- imagination of the inventor.
- 73
- 00:04:24,834 --> 00:04:26,709
- In the deserted
- property she designed,
- 74
- 00:04:26,834 --> 00:04:29,834
- you can almost hear
- the echoes of her ambition
- 75
- 00:04:29,959 --> 00:04:33,083
- and see how glass walls,
- promising transparency,
- 76
- 00:04:33,166 --> 00:04:35,333
- could become
- a labyrinth of mirrors.
- 77
- 00:04:36,834 --> 00:04:38,542
- Was Elizabeth lost
- in a landscape
- 78
- 00:04:38,667 --> 00:04:40,500
- between what
- she could make real
- 79
- 00:04:40,542 --> 00:04:42,792
- and the world
- of make-believe?
- 80
- 00:04:44,500 --> 00:04:48,083
- For me,
- this was a story of how people get trapped
- 81
- 00:04:48,166 --> 00:04:51,834
- over time with trading off
- human values.
- 82
- 00:04:52,375 --> 00:04:54,667
- And then, the way that
- they trade off those values
- 83
- 00:04:54,709 --> 00:04:57,959
- change them as people
- and things go down.
- 84
- 00:04:58,041 --> 00:05:01,375
- So part of it was
- trying to understand...
- 85
- 00:05:02,250 --> 00:05:04,291
- and I think this is
- part of the story...
- 86
- 00:05:04,375 --> 00:05:05,625
- is the journey
- for Elizabeth.
- 87
- 00:05:05,709 --> 00:05:08,667
- Some people take a path,
- 88
- 00:05:08,750 --> 00:05:11,625
- trying to do positive things
- for the world, right?
- 89
- 00:05:11,709 --> 00:05:14,166
- Nobody questions
- that her motives were...
- 90
- 00:05:14,250 --> 00:05:17,458
- were positive, but end up
- being something bad.
- 91
- 00:05:17,542 --> 00:05:18,792
- How do we react to this?
- 92
- 00:05:18,875 --> 00:05:21,083
- You can look
- at her at the end,
- 93
- 00:05:21,166 --> 00:05:22,959
- and say how could
- she do this,
- 94
- 00:05:23,041 --> 00:05:25,417
- but I think that
- would miss the point
- 95
- 00:05:25,500 --> 00:05:28,083
- if you don't understand
- the journey.
- 96
- 00:05:28,166 --> 00:05:30,125
- If you look at her
- from the beginning,
- 97
- 00:05:30,208 --> 00:05:32,333
- it will be a cautionary
- tale about all of us.
- 98
- 00:05:39,125 --> 00:05:41,709
- I grew up spending summers
- 99
- 00:05:41,792 --> 00:05:44,417
- and the holidays with my uncle.
- 100
- 00:05:46,417 --> 00:05:48,625
- I remember how much
- he loved the beach.
- 101
- 00:05:49,834 --> 00:05:52,917
- I remember
- how much I loved him.
- 102
- 00:05:54,583 --> 00:05:57,625
- He was diagnosed
- one day with skin cancer,
- 103
- 00:05:58,792 --> 00:06:01,041
- which all of a sudden
- was brain cancer,
- 104
- 00:06:01,750 --> 00:06:03,917
- and in his bones.
- 105
- 00:06:05,083 --> 00:06:08,083
- He didn't live
- to see his son grow up,
- 106
- 00:06:09,250 --> 00:06:11,625
- and I never got to say goodbye.
- 107
- 00:06:13,583 --> 00:06:18,792
- The right to protect
- the health and well-being
- 108
- 00:06:19,709 --> 00:06:24,417
- of every person,
- of those we love,
- 109
- 00:06:25,291 --> 00:06:28,291
- is a basic human right.
- 110
- 00:06:29,709 --> 00:06:31,583
- Over the course
- of the last 11 years,
- 111
- 00:06:31,667 --> 00:06:34,583
- we've made it possible to run
- 112
- 00:06:34,667 --> 00:06:37,166
- comprehensive laboratory tests
- 113
- 00:06:37,250 --> 00:06:39,709
- from a few drops of blood
- 114
- 00:06:39,792 --> 00:06:42,792
- that could be taken
- from a finger.
- 115
- 00:06:48,375 --> 00:06:50,667
- And we've made it possible
- 116
- 00:06:50,750 --> 00:06:54,000
- to eliminate the tubes
- and tubes of blood
- 117
- 00:06:54,083 --> 00:06:57,250
- that traditionally have
- to be drawn from an arm,
- 118
- 00:06:58,709 --> 00:07:02,125
- and replaced it
- with the nanotainer.
- 119
- 00:07:14,709 --> 00:07:17,125
- And if I had one wish,
- 120
- 00:07:17,208 --> 00:07:19,917
- standing here with all of you,
- 121
- 00:07:20,000 --> 00:07:24,417
- it would be that no one
- has to go through the pain
- 122
- 00:07:24,500 --> 00:07:26,709
- of traditional phlebotomy.
- 123
- 00:07:28,250 --> 00:07:29,917
- I was always...
- 124
- 00:07:30,000 --> 00:07:32,125
- absolutely terrified
- of giving blood.
- 125
- 00:07:32,208 --> 00:07:34,583
- It's the only thing in my life
- I've ever been scared of.
- 126
- 00:07:47,041 --> 00:07:49,709
- If we were to sit here and
- dream up torture experiments,
- 127
- 00:07:49,792 --> 00:07:53,125
- psychologically, the concept
- of sticking large needles
- 128
- 00:07:53,208 --> 00:07:55,333
- over and over into someone,
- 129
- 00:07:55,417 --> 00:07:57,625
- and draining out so much blood,
- 130
- 00:07:57,709 --> 00:08:00,709
- while they're watching this
- blood being sucked out of them,
- 131
- 00:08:00,792 --> 00:08:04,625
- that you've basically
- completely debilitated them,
- 132
- 00:08:04,709 --> 00:08:08,625
- that qualifies as a pretty good
- torture experiment in my book.
- 133
- 00:08:08,709 --> 00:08:11,583
- I find it quite disturbing.
- 134
- 00:08:16,875 --> 00:08:19,709
- This technician is preparing the blood sample
- 135
- 00:08:19,792 --> 00:08:21,917
- for a white cell count.
- 136
- 00:08:22,000 --> 00:08:24,709
- She dilutes the blood
- with a special fluid
- 137
- 00:08:24,792 --> 00:08:28,208
- and puts a measured amount
- into a pipette.
- 138
- 00:08:28,291 --> 00:08:30,917
- Since, really,
- the clinical lab infrastructure
- 139
- 00:08:31,000 --> 00:08:34,792
- began to develop, we've had
- this highly centralized,
- 140
- 00:08:34,875 --> 00:08:37,375
- very big,
- analytical instruments
- 141
- 00:08:37,458 --> 00:08:39,792
- which require that much blood,
- 142
- 00:08:39,875 --> 00:08:43,625
- and therefore, people have
- had to take tubes and tubes
- 143
- 00:08:43,709 --> 00:08:46,458
- every time they do
- a blood draw.
- 144
- 00:08:46,542 --> 00:08:50,917
- So, laboratory testing
- hasn't changed since the 1950s.
- 145
- 00:08:51,000 --> 00:08:55,000
- It's the closest thing
- to mainframe computers versus...
- 146
- 00:08:55,083 --> 00:08:58,083
- it's not even PCs...
- versus mobile phones that...
- 147
- 00:08:58,166 --> 00:09:00,291
- that I've ever seen, right?
- 148
- 00:09:00,375 --> 00:09:04,750
- So, the timing is very ripe
- to change this paradigm.
- 149
- 00:09:36,041 --> 00:09:39,375
- There's no shortcut
- to really hard work.
- 150
- 00:09:39,458 --> 00:09:41,875
- And we learn so much more
- from our failures
- 151
- 00:09:41,959 --> 00:09:44,709
- than we did from our successes.
- 152
- 00:09:44,792 --> 00:09:46,875
- We code-named our product
- "The Edison"
- 153
- 00:09:46,959 --> 00:09:49,875
- because we assumed
- we'd have to fail 10,000 times
- 154
- 00:09:49,959 --> 00:09:52,500
- to get it to work the 10,001st.
- 155
- 00:09:53,583 --> 00:09:54,959
- And we did.
- 156
- 00:10:06,000 --> 00:10:08,917
- What does it mean to invent something?
- 157
- 00:10:09,000 --> 00:10:11,125
- It could be an act of creation,
- 158
- 00:10:11,208 --> 00:10:13,250
- or an act of deception.
- 159
- 00:10:13,333 --> 00:10:15,709
- The world's greatest
- inventor did both.
- 160
- 00:10:15,792 --> 00:10:17,709
- We think of Thomas Edison
- 161
- 00:10:17,792 --> 00:10:19,583
- as the inventor
- of the phonograph,
- 162
- 00:10:19,667 --> 00:10:22,375
- the electric light bulb,
- and the way we look at the world.
- 163
- 00:10:22,458 --> 00:10:26,417
- Edison's company made one of the
- first motion picture cameras
- 164
- 00:10:26,500 --> 00:10:31,000
- and the very first commercial
- movie, Blacksmithing Scene.
- 165
- 00:10:38,208 --> 00:10:41,208
- His company produced
- over 1,200 films,
- 166
- 00:10:41,291 --> 00:10:43,542
- documentaries
- and fiction films,
- 167
- 00:10:43,625 --> 00:10:45,875
- including
- the first screen kiss.
- 168
- 00:10:51,667 --> 00:10:55,208
- But Edison's greatest invention
- may have been himself.
- 169
- 00:10:55,291 --> 00:10:56,750
- The first celebrity
- businessman,
- 170
- 00:10:56,834 --> 00:11:00,041
- Edison's secret was knowing
- how to tell a good story,
- 171
- 00:11:00,125 --> 00:11:03,125
- in which he cast himself
- as the main character.
- 172
- 00:11:03,208 --> 00:11:05,166
- "The Wizard of Menlo Park,"
- 173
- 00:11:05,250 --> 00:11:09,041
- a man who could conjure
- anything in his laboratory.
- 174
- 00:11:13,208 --> 00:11:15,542
- He had his name
- on over 2,000 patents,
- 175
- 00:11:15,625 --> 00:11:17,542
- from telegraphs to vacuum pumps
- 176
- 00:11:17,625 --> 00:11:20,667
- to electric cars.
- 177
- 00:11:20,750 --> 00:11:24,125
- But he often promised
- far more than he could deliver.
- 178
- 00:11:24,208 --> 00:11:27,375
- In 1878, the New York Sun
- printed a claim by Edison
- 179
- 00:11:27,458 --> 00:11:30,709
- that he had solved the mystery
- of the incandescent light bulb.
- 180
- 00:11:30,792 --> 00:11:32,875
- But it wasn't true.
- 181
- 00:11:32,959 --> 00:11:34,500
- His filaments kept melting.
- 182
- 00:11:34,583 --> 00:11:36,542
- When reporters and investors
- 183
- 00:11:36,625 --> 00:11:39,750
- asked for demonstrations,
- he faked them.
- 184
- 00:11:39,834 --> 00:11:41,458
- To keep journalists
- sympathetic,
- 185
- 00:11:41,542 --> 00:11:43,667
- he gave them stock
- in his company.
- 186
- 00:11:45,250 --> 00:11:48,458
- For four years, he pretended
- his invention was good to go,
- 187
- 00:11:48,542 --> 00:11:51,083
- even while he scrambled
- to make it work.
- 188
- 00:11:51,166 --> 00:11:54,125
- Then, just before his money
- and credit ran out,
- 189
- 00:11:54,208 --> 00:11:57,333
- he solved the problem
- of how to keep the lights on.
- 190
- 00:11:58,959 --> 00:12:01,792
- He was the first to practice
- the Silicon Valley art
- 191
- 00:12:01,875 --> 00:12:04,083
- of "fake it till you make it."
- 192
- 00:12:06,166 --> 00:12:09,583
- More than a hundred years
- after Edison's first movies,
- 193
- 00:12:09,667 --> 00:12:12,500
- Elizabeth Holmes modeled
- her own ambitious career
- 194
- 00:12:12,583 --> 00:12:14,583
- after the great
- American inventor,
- 195
- 00:12:14,667 --> 00:12:17,959
- with a magical machine
- named after the man himself.
- 196
- 00:12:22,208 --> 00:12:25,625
- It was obviously such an incredible story.
- 197
- 00:12:25,709 --> 00:12:28,583
- The 19-year-old, the dropout,
- 198
- 00:12:28,667 --> 00:12:31,375
- a woman creating
- this $9 billion
- 199
- 00:12:31,458 --> 00:12:33,667
- innovative company.
- 200
- 00:12:34,458 --> 00:12:37,083
- I went out there for four days:
- 201
- 00:12:37,166 --> 00:12:40,458
- three interviewing her and one
- interviewing some other people.
- 202
- 00:12:40,542 --> 00:12:42,417
- What are
- you working on?
- 203
- 00:12:42,500 --> 00:12:44,959
- When she was talking about some subject
- 204
- 00:12:45,041 --> 00:12:47,500
- other than diagnostic testing,
- 205
- 00:12:47,583 --> 00:12:49,667
- she was very unprepossessing,
- 206
- 00:12:49,750 --> 00:12:51,750
- very ingenuous.
- 207
- 00:12:51,834 --> 00:12:54,208
- When she began to talk about...
- 208
- 00:12:54,291 --> 00:12:57,458
- the mission,
- or the, you know, her business,
- 209
- 00:12:57,542 --> 00:12:59,417
- then there was a shift,
- 210
- 00:12:59,500 --> 00:13:03,375
- and she became very,
- very focused, very intense.
- 211
- 00:13:03,458 --> 00:13:06,375
- Firm control of all the facts.
- 212
- 00:13:06,458 --> 00:13:08,333
- No question surprised her.
- 213
- 00:13:08,417 --> 00:13:12,959
- Um... very impressive,
- and very idealistic.
- 214
- 00:13:17,917 --> 00:13:19,792
- We were the first to put on the cover
- 215
- 00:13:19,875 --> 00:13:23,625
- and write a major story about
- this amazing woman next to me.
- 216
- 00:13:23,709 --> 00:13:27,750
- "This CEO Is
- Out for Blood."
- 217
- 00:13:29,166 --> 00:13:31,208
- This is Elizabeth's second
- 218
- 00:13:31,291 --> 00:13:33,625
- public live interview...
- 219
- 00:13:33,709 --> 00:13:36,792
- Fortune invited her to the
- Most Powerful Women's conference,
- 220
- 00:13:36,875 --> 00:13:41,417
- even though she wasn't the head
- of a Fortune 500 company.
- 221
- 00:13:41,500 --> 00:13:43,208
- And she was saying to us,
- 222
- 00:13:43,291 --> 00:13:47,792
- "I'm the only one of these
- people that founded a company."
- 223
- 00:13:47,875 --> 00:13:50,417
- You know, "They're CEOs,
- 224
- 00:13:50,500 --> 00:13:52,625
- "yeah, but I founded
- this company.
- 225
- 00:13:52,709 --> 00:13:56,125
- "I invented
- what this company is about.
- 226
- 00:13:56,208 --> 00:13:57,667
- I deserve to be here."
- 227
- 00:13:57,750 --> 00:13:59,510
- I'll talk with people
- sometimes, they'll say,
- 228
- 00:13:59,583 --> 00:14:01,375
- "Oh, you know,
- I want to start a business."
- 229
- 00:14:01,458 --> 00:14:04,375
- And my question is always why,
- 230
- 00:14:04,458 --> 00:14:07,166
- because there's
- gotta be a mission.
- 231
- 00:14:09,417 --> 00:14:11,667
- I had heard about Theranos
- 232
- 00:14:11,750 --> 00:14:14,333
- and Elizabeth Holmes,
- a woman executive
- 233
- 00:14:14,417 --> 00:14:17,166
- in the male-dominated
- Silicon Valley,
- 234
- 00:14:17,250 --> 00:14:18,625
- who was starting a company
- 235
- 00:14:18,709 --> 00:14:21,417
- with some real
- potential social good.
- 236
- 00:14:22,333 --> 00:14:24,458
- I write a lot
- about disruption,
- 237
- 00:14:24,542 --> 00:14:28,125
- and Theranos was
- aimed to be a disruptor
- 238
- 00:14:28,208 --> 00:14:30,208
- of the established
- ways of doing things,
- 239
- 00:14:30,291 --> 00:14:31,834
- the established, inefficient,
- 240
- 00:14:31,917 --> 00:14:34,500
- and expensive ways
- of doing things.
- 241
- 00:14:34,583 --> 00:14:36,875
- And she was going to herald
- 242
- 00:14:36,959 --> 00:14:40,458
- a revolution in medical
- treatment in this country.
- 243
- 00:14:52,834 --> 00:14:54,917
- The lab industry needed disrupting.
- 244
- 00:14:55,000 --> 00:14:57,041
- It was dominated
- by two companies:
- 245
- 00:14:57,125 --> 00:14:59,208
- Quest and LabCorp.
- 246
- 00:14:59,291 --> 00:15:01,917
- Between them, they controlled
- almost 80% of the market.
- 247
- 00:15:02,000 --> 00:15:06,917
- Their blood test prices were
- always high and never transparent.
- 248
- 00:15:07,000 --> 00:15:09,375
- They were sued for overcharging
- Medicaid and Medicare
- 249
- 00:15:09,458 --> 00:15:10,875
- for billions of dollars.
- 250
- 00:15:10,959 --> 00:15:12,667
- But the size
- of their operations,
- 251
- 00:15:12,750 --> 00:15:15,834
- including the ability to do over
- a thousand different blood tests,
- 252
- 00:15:15,917 --> 00:15:18,500
- made them difficult
- to challenge.
- 253
- 00:15:18,583 --> 00:15:21,667
- Until Elizabeth Holmes
- and Edison.
- 254
- 00:15:23,000 --> 00:15:26,083
- She had built a staff of 700 people.
- 255
- 00:15:26,166 --> 00:15:30,041
- Well, I went out to look at the Newark,
- California, facility,
- 256
- 00:15:30,125 --> 00:15:32,625
- which was extraordinary.
- 257
- 00:15:47,917 --> 00:15:50,834
- Well, you know,
- her story's so compelling.
- 258
- 00:15:50,917 --> 00:15:54,542
- I mean, if you think about it,
- you go in and you see
- 259
- 00:15:54,625 --> 00:15:56,417
- this woman lives
- in an apartment...
- 260
- 00:15:56,500 --> 00:15:59,291
- basically, she called
- her apartment a mattress.
- 261
- 00:15:59,375 --> 00:16:01,750
- The only thing in the
- refrigerator was bottled water.
- 262
- 00:16:01,834 --> 00:16:03,625
- She ate all the meals
- at the office.
- 263
- 00:16:03,709 --> 00:16:05,083
- She slept four hours a day.
- 264
- 00:16:05,166 --> 00:16:08,250
- She worked in the office
- till midnight or thereabouts.
- 265
- 00:16:08,333 --> 00:16:11,125
- You ask, do you date?
- "No, I don't have ti...
- 266
- 00:16:11,208 --> 00:16:13,041
- I'm married to Theranos."
- 267
- 00:16:13,125 --> 00:16:15,125
- That was her...
- that's literally her words,
- 268
- 00:16:15,208 --> 00:16:16,959
- what she said to me,
- and I believed it.
- 269
- 00:16:18,542 --> 00:16:22,250
- You wear black outfits a lot.
- Why?
- 270
- 00:16:22,333 --> 00:16:25,291
- Because in line with the...
- 271
- 00:16:25,375 --> 00:16:27,458
- designing my life
- to be able to give
- 272
- 00:16:27,542 --> 00:16:30,000
- every bit of energy
- I have to this,
- 273
- 00:16:30,083 --> 00:16:33,125
- I have a closet that
- has a very large number
- 274
- 00:16:33,208 --> 00:16:35,417
- of the exact same
- set of clothes,
- 275
- 00:16:35,500 --> 00:16:37,000
- and every single day,
- 276
- 00:16:37,083 --> 00:16:39,750
- I put the same thing on,
- and I don't have to think about it.
- 277
- 00:16:39,834 --> 00:16:42,208
- Steve Jobs used to say that, too.
- 278
- 00:16:43,375 --> 00:16:45,208
- He wore jeans.
- 279
- 00:16:46,959 --> 00:16:48,417
- She was obviously, you know,
- 280
- 00:16:48,500 --> 00:16:50,291
- Steve Jobs was her hero.
- 281
- 00:16:50,375 --> 00:16:52,458
- And I just felt,
- oh, well, she's a young person.
- 282
- 00:16:52,542 --> 00:16:57,750
- You know, I'll give them their
- little hero worship thing.
- 283
- 00:16:58,959 --> 00:17:02,959
- I'm a tremendous admirer of what Jobs did.
- 284
- 00:17:03,041 --> 00:17:05,000
- I think he was a genius.
- 285
- 00:17:05,083 --> 00:17:06,667
- I do have to disclose that
- 286
- 00:17:06,750 --> 00:17:09,291
- I've been in black turtlenecks
- since I was seven.
- 287
- 00:17:24,041 --> 00:17:26,417
- I want to talk for just a minute about
- 288
- 00:17:26,500 --> 00:17:28,875
- what it means to be
- in this company right now.
- 289
- 00:17:28,959 --> 00:17:35,542
- I was sitting yesterday with the
- president of Brazil for lunch,
- 290
- 00:17:35,625 --> 00:17:39,166
- and this woman had invited me,
- 291
- 00:17:39,250 --> 00:17:42,667
- and Eric Schmidt from Google,
- and Mark Zuckerberg,
- 292
- 00:17:42,750 --> 00:17:46,458
- and the Airbnb guys, and the Uber guys,
- and a bunch of other people,
- 293
- 00:17:46,542 --> 00:17:50,041
- and she sits down at the table
- with all these people,
- 294
- 00:17:50,125 --> 00:17:53,083
- and we all have
- the headphones on, translators,
- 295
- 00:17:53,166 --> 00:17:57,542
- and she says, "The strategic
- priority of Brazil
- 296
- 00:17:57,625 --> 00:18:00,500
- "is to get access
- to low cost diagnostics
- 297
- 00:18:00,583 --> 00:18:02,792
- "that can facilitate
- early detection
- 298
- 00:18:02,875 --> 00:18:05,583
- and prevention and..."
- 299
- 00:18:09,709 --> 00:18:12,125
- We're all kind of sitting there,
- and you can see, like,
- 300
- 00:18:12,208 --> 00:18:15,250
- all the other CEOs' faces
- being like...
- 301
- 00:18:15,333 --> 00:18:18,166
- not wanting to be
- the ones in the spotlight,
- 302
- 00:18:18,250 --> 00:18:20,309
- and she kept on doing this
- for like an hour and a half.
- 303
- 00:18:20,333 --> 00:18:23,750
- And so, of course, I'm trying
- to, you know, be humble,
- 304
- 00:18:23,834 --> 00:18:25,792
- but I'm...
- 305
- 00:18:25,875 --> 00:18:27,417
- When I first met her,
- 306
- 00:18:27,500 --> 00:18:29,083
- I thought she was
- really interesting.
- 307
- 00:18:29,166 --> 00:18:32,750
- It was... It was hard to really
- get a sense of who she was,
- 308
- 00:18:32,834 --> 00:18:36,750
- but in a way,
- I felt I idolized her in so many ways,
- 309
- 00:18:36,834 --> 00:18:39,166
- based on, like,
- the little that I had read.
- 310
- 00:18:39,250 --> 00:18:41,417
- Nice to meet you.
- I'm Elizabeth.
- 311
- 00:18:41,500 --> 00:18:43,792
- For being a woman in the sciences,
- 312
- 00:18:43,875 --> 00:18:45,417
- being a woman in tech,
- 313
- 00:18:45,500 --> 00:18:48,000
- the fact that she started
- her own company,
- 314
- 00:18:48,083 --> 00:18:50,375
- that really got me excited.
- 315
- 00:18:50,458 --> 00:18:53,291
- You know, she was
- a really good idol to have.
- 316
- 00:18:53,375 --> 00:18:54,625
- Thank you so much.
- 317
- 00:18:54,709 --> 00:18:56,875
- In a sense,
- I was super naive and like,
- 318
- 00:18:56,959 --> 00:18:59,959
- almost drank the Kool-Aid,
- like, a little too quickly,
- 319
- 00:19:00,041 --> 00:19:03,834
- and was just more enthusiastic
- to be a part of the team.
- 320
- 00:19:03,917 --> 00:19:05,834
- You all are part of something
- 321
- 00:19:05,917 --> 00:19:08,583
- that is a revolution,
- and you're part of something
- 322
- 00:19:08,667 --> 00:19:11,166
- that is going to change
- our world.
- 323
- 00:19:12,041 --> 00:19:14,417
- What higher purpose
- is there in life
- 324
- 00:19:14,500 --> 00:19:16,375
- than to be able
- to be doing that?
- 325
- 00:19:22,542 --> 00:19:24,500
- When I went on an interview,
- 326
- 00:19:24,583 --> 00:19:26,125
- Elizabeth was there.
- 327
- 00:19:26,208 --> 00:19:27,834
- And I was
- a little surprised,
- 328
- 00:19:27,917 --> 00:19:31,041
- considering I would be the
- low man on the totem pole.
- 329
- 00:19:31,750 --> 00:19:33,875
- I found out later
- there was no one
- 330
- 00:19:33,959 --> 00:19:36,333
- that got past her
- in order to get hired.
- 331
- 00:19:36,417 --> 00:19:38,959
- Um...
- 332
- 00:19:39,041 --> 00:19:42,834
- I know this sounds odd,
- but my first impression was
- 333
- 00:19:42,917 --> 00:19:44,917
- that she didn't blink.
- 334
- 00:19:47,417 --> 00:19:50,083
- And so, I always wanted
- to make sure that I kept
- 335
- 00:19:50,166 --> 00:19:52,875
- great eye contact 'cause
- I didn't want to be the one
- 336
- 00:19:52,959 --> 00:19:55,542
- to look over, right?
- 337
- 00:19:55,625 --> 00:19:58,458
- Uh, so, she was very intense.
- 338
- 00:20:04,959 --> 00:20:07,059
- Comparing it to
- the other interviews that I had
- 339
- 00:20:07,083 --> 00:20:10,375
- with other tech companies in the Bay Area,
- it was different.
- 340
- 00:20:10,458 --> 00:20:15,125
- You know, they didn't tell me nearly
- as much about what they were doing.
- 341
- 00:20:15,208 --> 00:20:17,458
- She never blinked
- during the interview.
- 342
- 00:20:18,792 --> 00:20:21,709
- She did
- tell me about
- 343
- 00:20:21,792 --> 00:20:23,375
- just the one drop
- of blood
- 344
- 00:20:23,458 --> 00:20:26,166
- and it's a medical
- testing company.
- 345
- 00:20:26,250 --> 00:20:29,041
- Um, they didn't say anything
- about how it worked,
- 346
- 00:20:29,125 --> 00:20:31,125
- or what the technology was.
- 347
- 00:20:31,208 --> 00:20:35,125
- They just said, "You'll be
- working with consumables,"
- 348
- 00:20:35,208 --> 00:20:36,834
- which was kind of vague.
- 349
- 00:20:36,917 --> 00:20:38,917
- How did they describe the project?
- 350
- 00:20:39,000 --> 00:20:41,709
- They didn't.
- 351
- 00:20:41,792 --> 00:20:43,712
- So, how did you know what
- you were signing on for?
- 352
- 00:20:43,792 --> 00:20:47,083
- You know, I had a very vague idea,
- but I didn't.
- 353
- 00:20:47,166 --> 00:20:50,166
- That's actually not that untypical
- in startup environments.
- 354
- 00:20:50,250 --> 00:20:52,000
- They want to keep
- what they're doing secret.
- 355
- 00:20:52,083 --> 00:20:55,166
- The response
- of the major lab companies
- 356
- 00:20:55,250 --> 00:20:57,166
- was to say,
- "Well, we don't know
- 357
- 00:20:57,250 --> 00:20:59,267
- - how they're doing what they're doing." And...
- - Exactly.
- 358
- 00:20:59,291 --> 00:21:00,851
- And if it's so great,
- why don't they show it?
- 359
- 00:21:00,875 --> 00:21:02,309
- There's too much secrecy
- is what they said.
- 360
- 00:21:02,333 --> 00:21:04,000
- Right, that's exactly
- what they said.
- 361
- 00:21:04,083 --> 00:21:06,291
- And, you know, our position
- on that is, first of all,
- 362
- 00:21:06,375 --> 00:21:08,417
- we don't think that we need
- 363
- 00:21:08,500 --> 00:21:12,083
- to explain ourselves
- to competitive companies.
- 364
- 00:21:12,166 --> 00:21:16,333
- What we're working to do is to
- invent an integrated solution
- 365
- 00:21:16,417 --> 00:21:18,750
- where every person
- gets access
- 366
- 00:21:18,834 --> 00:21:23,750
- to this wealth of information
- from tiny droplets of blood,
- 367
- 00:21:23,834 --> 00:21:26,834
- and then see
- how they change over time.
- 368
- 00:21:33,166 --> 00:21:35,625
- She talked some about currently,
- 369
- 00:21:35,709 --> 00:21:38,291
- you get a blood test
- maybe once a year,
- 370
- 00:21:38,375 --> 00:21:40,959
- and so you get a snapshot
- of what's going on.
- 371
- 00:21:41,041 --> 00:21:44,834
- If you were to start doing it
- every month, say,
- 372
- 00:21:44,917 --> 00:21:46,625
- you would get a movie.
- 373
- 00:21:48,709 --> 00:21:50,709
- You have multiple frames from that movie,
- 374
- 00:21:50,792 --> 00:21:52,792
- and you can begin
- to see the context
- 375
- 00:21:52,875 --> 00:21:55,417
- of projecting where
- someone is heading.
- 376
- 00:21:55,500 --> 00:21:59,875
- You're seeing changes
- in laboratory data over time,
- 377
- 00:21:59,959 --> 00:22:03,792
- and understanding the clinical
- significance of that.
- 378
- 00:22:03,875 --> 00:22:07,917
- The data can be used
- in a more meaningful way.
- 379
- 00:22:08,000 --> 00:22:09,500
- It was personalized medicine.
- 380
- 00:22:09,583 --> 00:22:12,125
- Maybe you could catch
- something very early.
- 381
- 00:22:12,208 --> 00:22:13,875
- You know, you could catch
- an early cancer,
- 382
- 00:22:13,959 --> 00:22:17,166
- or you could get... you know,
- when there was still time.
- 383
- 00:22:17,250 --> 00:22:20,208
- This was sort of
- the vast vision.
- 384
- 00:22:20,291 --> 00:22:23,458
- So,
- the idea with the Edison was to stick
- 385
- 00:22:23,542 --> 00:22:26,208
- the lab inside the box.
- 386
- 00:22:26,291 --> 00:22:29,000
- Because it incorporates
- so many different disciplines,
- 387
- 00:22:29,083 --> 00:22:30,959
- it's hard to pull this off.
- 388
- 00:22:32,375 --> 00:22:34,000
- There's all these
- different components
- 389
- 00:22:34,083 --> 00:22:35,125
- that go into the machine.
- 390
- 00:22:35,208 --> 00:22:37,542
- There's a centrifuge,
- there's a...
- 391
- 00:22:38,333 --> 00:22:39,917
- a little thing
- the samples go into.
- 392
- 00:22:40,000 --> 00:22:42,041
- There's a way
- to prick the blood.
- 393
- 00:22:42,125 --> 00:22:43,685
- All these things were
- prototypes, right?
- 394
- 00:22:43,750 --> 00:22:46,792
- The first thing is,
- you look at what the chemists are doing.
- 395
- 00:22:46,834 --> 00:22:48,333
- - Right.
- - Right?
- 396
- 00:22:48,375 --> 00:22:50,351
- Because you're automating
- what somebody is already doing.
- 397
- 00:22:50,375 --> 00:22:53,125
- You're not inventing
- something totally new.
- 398
- 00:22:56,000 --> 00:22:59,792
- I'm going to have to have a kind of dance,
- let's say, right?
- 399
- 00:22:59,834 --> 00:23:02,542
- I'm going to have to have
- this thing go to the place,
- 400
- 00:23:02,667 --> 00:23:04,750
- pick up something,
- drop off something,
- 401
- 00:23:04,834 --> 00:23:06,500
- mix something, etcetera.
- 402
- 00:23:08,375 --> 00:23:09,834
- The idea was the pipette
- 403
- 00:23:09,959 --> 00:23:12,834
- poked holes into these
- little plastic containers
- 404
- 00:23:12,959 --> 00:23:14,041
- with reagents in them.
- 405
- 00:23:14,125 --> 00:23:16,917
- It mixes some of
- the reagents with blood.
- 406
- 00:23:21,458 --> 00:23:23,101
- My group was responsible for developing
- 407
- 00:23:23,125 --> 00:23:24,500
- about 60 different tests,
- 408
- 00:23:24,542 --> 00:23:27,166
- and trying to get those
- to work on the Edisons.
- 409
- 00:23:27,250 --> 00:23:29,750
- The trick was how do you make it dependable,
- 410
- 00:23:29,834 --> 00:23:32,333
- then how do you incorporate
- it into a bigger process
- 411
- 00:23:32,375 --> 00:23:34,917
- that involves these
- 50 milliliter samples?
- 412
- 00:23:35,000 --> 00:23:36,333
- It was a complex device.
- 413
- 00:23:36,458 --> 00:23:38,792
- You know, a lot of moving parts,
- and a complicated system.
- 414
- 00:23:38,834 --> 00:23:41,000
- It's not easy to do
- all this stuff, so it was...
- 415
- 00:23:41,083 --> 00:23:42,434
- You know,
- I figured we'd get there.
- 416
- 00:23:42,458 --> 00:23:45,250
- We felt we were on the path
- 417
- 00:23:45,333 --> 00:23:47,667
- to be able to make machines
- that could do this.
- 418
- 00:23:58,125 --> 00:24:01,405
- Elizabeth Holmes,
- we're on the record unless you tell me not.
- 419
- 00:24:01,458 --> 00:24:04,458
- Let me begin. When you think
- about yourself as a child...
- 420
- 00:24:04,542 --> 00:24:06,250
- I had multiple interviews with her,
- 421
- 00:24:06,333 --> 00:24:10,000
- but one of them was to go to a
- Chinese restaurant in Palo Alto.
- 422
- 00:24:10,083 --> 00:24:11,792
- And it was really good food.
- 423
- 00:24:11,875 --> 00:24:15,542
- I had the
- blessing of being able to figure out
- 424
- 00:24:15,625 --> 00:24:17,792
- what I...
- 425
- 00:24:17,875 --> 00:24:21,750
- Thank you...wanted to do very early.
- 426
- 00:24:21,834 --> 00:24:25,917
- And I was very interested in
- the concept of creating things.
- 427
- 00:24:26,000 --> 00:24:29,750
- I must've been, like, seven,
- and I had a notebook
- 428
- 00:24:29,834 --> 00:24:33,166
- of a complete design
- for a time machine.
- 429
- 00:24:33,250 --> 00:24:35,792
- It was a very detailed drawing
- 430
- 00:24:35,875 --> 00:24:38,959
- of all the functionality,
- in terms of the interface.
- 431
- 00:24:39,041 --> 00:24:41,333
- I got really
- interested in the idea
- 432
- 00:24:41,417 --> 00:24:43,583
- of creating and building
- something.
- 433
- 00:24:43,667 --> 00:24:46,583
- But ultimately,
- it became clear to me
- 434
- 00:24:46,667 --> 00:24:49,417
- that the vehicle
- of a business provides
- 435
- 00:24:49,500 --> 00:24:53,083
- the greatest tool for being
- able to affect change.
- 436
- 00:25:04,959 --> 00:25:07,291
- I was very studious.
- 437
- 00:25:07,375 --> 00:25:09,542
- I never really watched TV.
- 438
- 00:25:11,458 --> 00:25:14,875
- As I went through school
- and went through high school,
- 439
- 00:25:14,959 --> 00:25:19,083
- my best friends were...
- were books.
- 440
- 00:25:19,166 --> 00:25:22,125
- I got into Moby Dick
- and The Iliad and The Odyssey
- 441
- 00:25:22,208 --> 00:25:24,208
- at a pretty young age.
- 442
- 00:25:26,041 --> 00:25:29,625
- Understanding how
- great people and great leaders
- 443
- 00:25:29,709 --> 00:25:31,917
- led groups of people.
- 444
- 00:25:35,792 --> 00:25:39,166
- So much changes in our society
- technologically,
- 445
- 00:25:39,250 --> 00:25:44,208
- but as humans,
- we don't change a lot, you know?
- 446
- 00:25:59,000 --> 00:26:02,667
- This is a high
- tech atmosphere around Stanford.
- 447
- 00:26:02,750 --> 00:26:07,250
- Internet, the startups,
- the biotech, and medicine.
- 448
- 00:26:09,041 --> 00:26:12,000
- I started on the faculty
- here in 1984.
- 449
- 00:26:12,083 --> 00:26:14,000
- I'm currently
- a tenured professor.
- 450
- 00:26:14,083 --> 00:26:15,750
- And I was on boards
- of companies,
- 451
- 00:26:15,834 --> 00:26:17,500
- many private
- and public companies,
- 452
- 00:26:17,583 --> 00:26:19,417
- and I started
- a couple of companies.
- 453
- 00:26:19,500 --> 00:26:21,834
- So, I tend to be sought out
- 454
- 00:26:21,917 --> 00:26:23,667
- by kids who have
- an interest in business.
- 455
- 00:26:23,750 --> 00:26:26,166
- And people have
- made fortunes.
- 456
- 00:26:26,250 --> 00:26:28,417
- Students,
- young people,
- 457
- 00:26:28,500 --> 00:26:30,542
- turn into
- multimillionaires.
- 458
- 00:26:30,625 --> 00:26:34,166
- It makes for
- an odd morality.
- 459
- 00:26:36,083 --> 00:26:39,166
- When I was at Stanford,
- I started to spend all my time
- 460
- 00:26:39,250 --> 00:26:41,750
- thinking about how
- you could build something
- 461
- 00:26:41,834 --> 00:26:44,792
- that would change
- what we know
- 462
- 00:26:44,875 --> 00:26:47,625
- in terms of early detection
- and prevention.
- 463
- 00:26:48,417 --> 00:26:50,792
- I filed my first patent.
- 464
- 00:26:55,000 --> 00:26:57,375
- One day,
- Elizabeth came to me
- 465
- 00:26:57,458 --> 00:26:59,291
- and she described her idea.
- 466
- 00:27:01,000 --> 00:27:03,625
- She wanted to incorporate
- microfluidics
- 467
- 00:27:03,709 --> 00:27:07,291
- and nanotechnology
- into a patch,
- 468
- 00:27:07,375 --> 00:27:09,083
- where you could
- sample the blood,
- 469
- 00:27:09,166 --> 00:27:11,917
- and detect an infection,
- 470
- 00:27:12,000 --> 00:27:15,333
- and then at that point,
- deliver antibiotics through it.
- 471
- 00:27:17,375 --> 00:27:20,750
- Well, you can't do that.
- It's impossible, physically.
- 472
- 00:27:20,834 --> 00:27:23,041
- Antibiotics are not potent.
- You cannot do that.
- 473
- 00:27:23,125 --> 00:27:25,667
- There's a reason you have
- a big IV bag when... Okay.
- 474
- 00:27:25,750 --> 00:27:28,041
- So I said,
- "Elizabeth, that's fun,
- 475
- 00:27:28,125 --> 00:27:29,959
- but I don't think
- that's going to work."
- 476
- 00:27:32,166 --> 00:27:34,625
- She was a 19-year-old.
- 477
- 00:27:34,709 --> 00:27:37,166
- She never thought
- she had any limits.
- 478
- 00:27:37,250 --> 00:27:39,291
- She was going to conquer
- the world.
- 479
- 00:27:40,125 --> 00:27:43,417
- She came back twice, I think.
- 480
- 00:27:43,500 --> 00:27:45,041
- And I just really...
- 481
- 00:27:45,125 --> 00:27:47,458
- "I try to help students,
- but I just feel I can't help you.
- 482
- 00:27:47,542 --> 00:27:49,458
- "You're not listening,
- 483
- 00:27:49,542 --> 00:27:51,959
- but I'll help you find
- someone else to talk to."
- 484
- 00:27:55,458 --> 00:27:58,792
- This used to be my advisor's office.
- 485
- 00:27:58,875 --> 00:28:00,875
- We got in.
- 486
- 00:28:00,959 --> 00:28:02,643
- From the very first time I met her,
- 487
- 00:28:02,667 --> 00:28:04,792
- it was very clear
- she was unusual.
- 488
- 00:28:04,875 --> 00:28:07,250
- I've taught thousands
- of students,
- 489
- 00:28:07,333 --> 00:28:09,583
- probably tens of
- thousands of students,
- 490
- 00:28:09,667 --> 00:28:12,125
- at Stanford,
- and...
- 491
- 00:28:12,208 --> 00:28:13,667
- I knew right away
- 492
- 00:28:13,750 --> 00:28:18,792
- that I was dealing with
- something very, very different.
- 493
- 00:28:18,875 --> 00:28:21,625
- Channing Robinson,
- the head of the science department
- 494
- 00:28:21,709 --> 00:28:24,959
- at Stanford, leaves his tenured
- position to work for her?
- 495
- 00:28:25,041 --> 00:28:28,500
- He just thought this
- woman was something special.
- 496
- 00:28:28,583 --> 00:28:30,375
- You know, gazing into her eyes,
- 497
- 00:28:30,458 --> 00:28:34,834
- and realizing that he was
- talking to the next...
- 498
- 00:28:34,917 --> 00:28:37,083
- Steve Jobs or Bill Gates.
- 499
- 00:28:37,166 --> 00:28:39,500
- There were some
- other names mentioned
- 500
- 00:28:39,583 --> 00:28:42,166
- during the course of our
- conversation, like Archimedes.
- 501
- 00:28:44,375 --> 00:28:47,417
- I actually, originally,
- did not intend to drop out of Stanford,
- 502
- 00:28:47,500 --> 00:28:50,667
- but I wasn't going to any classes, and so then...
- 503
- 00:28:50,750 --> 00:28:53,750
- ...logistically,
- it just seemed like a waste of money.
- 504
- 00:28:54,917 --> 00:28:58,667
- The question was, as a 19-year-old,
- how do you go about the process
- 505
- 00:28:58,750 --> 00:29:01,333
- of convincing people that
- you know what you're doing,
- 506
- 00:29:01,417 --> 00:29:04,667
- and that you can
- pull it off. Um...
- 507
- 00:29:04,750 --> 00:29:06,667
- I think the first
- piece is realizing
- 508
- 00:29:06,750 --> 00:29:09,667
- that it's not necessarily
- about age, and...
- 509
- 00:29:09,750 --> 00:29:14,542
- um, people, like Steve Jobs,
- and Bill Gates,
- 510
- 00:29:14,625 --> 00:29:15,709
- and the Google guys,
- 511
- 00:29:15,792 --> 00:29:17,917
- and Michael Dell,
- and Larry Ellison,
- 512
- 00:29:18,000 --> 00:29:19,750
- and others,
- have demonstrated that.
- 513
- 00:29:19,834 --> 00:29:22,166
- You have to have the conviction
- 514
- 00:29:22,250 --> 00:29:24,709
- in yourself to be able
- to make something happen
- 515
- 00:29:24,792 --> 00:29:27,083
- because, ultimately,
- it's up to you.
- 516
- 00:29:33,792 --> 00:29:36,458
- You know, I don't think
- I would want to create
- 517
- 00:29:36,542 --> 00:29:41,166
- a society where people
- were not overconfident
- 518
- 00:29:41,250 --> 00:29:43,208
- in what they
- could achieve.
- 519
- 00:29:43,291 --> 00:29:45,166
- Like who would
- open a restaurant
- 520
- 00:29:45,250 --> 00:29:48,417
- if that was the case,
- or who would...
- 521
- 00:29:48,500 --> 00:29:49,834
- who would do a startup?
- 522
- 00:29:50,500 --> 00:29:52,417
- But I think this is
- really the issue,
- 523
- 00:29:52,500 --> 00:29:56,166
- is to say how do you
- become a person of vision
- 524
- 00:29:56,250 --> 00:29:57,625
- on one hand,
- 525
- 00:29:57,709 --> 00:30:00,041
- and how do you
- sell that vision
- 526
- 00:30:00,125 --> 00:30:01,583
- on the other hand,
- 527
- 00:30:01,667 --> 00:30:04,125
- but you also want to stay...
- 528
- 00:30:04,208 --> 00:30:07,500
- not realistic, but, you know,
- little closer to realistic
- 529
- 00:30:08,834 --> 00:30:10,291
- when the task needs it.
- 530
- 00:30:10,375 --> 00:30:12,351
- You have to be able
- not to buy your own bullshit.
- 531
- 00:30:12,375 --> 00:30:14,333
- Yes.
- 532
- 00:30:23,000 --> 00:30:25,166
- You incorporate the company in '04.
- 533
- 00:30:25,250 --> 00:30:28,583
- - Yeah.
- - What happened in the intervening nine years?
- 534
- 00:30:28,667 --> 00:30:30,709
- Our work during that period of time
- 535
- 00:30:30,792 --> 00:30:33,083
- was for pharmaceutical
- companies,
- 536
- 00:30:33,166 --> 00:30:37,250
- and for developing
- applications for the military.
- 537
- 00:30:37,333 --> 00:30:39,750
- But that model's
- going to evolve now
- 538
- 00:30:39,834 --> 00:30:42,333
- 'cause we're at another
- inflection point
- 539
- 00:30:42,417 --> 00:30:46,667
- - in our life cycle...
- - But are you thinking about an IPO or...
- 540
- 00:30:46,750 --> 00:30:50,208
- Well,
- we really believe that there's value
- 541
- 00:30:50,291 --> 00:30:51,792
- in being a private company.
- 542
- 00:30:51,875 --> 00:30:56,792
- It's allowed us
- to not have to talk about,
- 543
- 00:30:56,875 --> 00:31:01,250
- you know, what we're doing
- until it's done and introduce,
- 544
- 00:31:01,333 --> 00:31:04,333
- you know, incredible
- innovation without...
- 545
- 00:31:04,417 --> 00:31:07,792
- Using just her story
- as the blueprint for success,
- 546
- 00:31:07,875 --> 00:31:09,959
- Holmes would convince
- private investors
- 547
- 00:31:10,041 --> 00:31:12,500
- to put up hundreds
- of millions of dollars
- 548
- 00:31:12,583 --> 00:31:16,458
- without ever looking at
- audited financial statements.
- 549
- 00:31:16,542 --> 00:31:20,250
- We like to think that investing
- is a rational equation,
- 550
- 00:31:20,333 --> 00:31:23,583
- a careful balance sheet
- of risk and reward.
- 551
- 00:31:23,667 --> 00:31:25,333
- But in fact, investors,
- 552
- 00:31:25,417 --> 00:31:27,041
- particularly ones
- who come in early,
- 553
- 00:31:27,125 --> 00:31:29,041
- are often guided by their gut.
- 554
- 00:31:29,125 --> 00:31:30,583
- Instead of relying on facts,
- 555
- 00:31:30,667 --> 00:31:33,959
- early investing can be more
- like a wing and a prayer.
- 556
- 00:31:34,041 --> 00:31:37,083
- The word credit comes
- from the Latin word credo,
- 557
- 00:31:37,166 --> 00:31:39,959
- which means "I believe."
- 558
- 00:31:40,041 --> 00:31:42,333
- Some of the early
- believers included
- 559
- 00:31:42,417 --> 00:31:45,542
- a former head of software
- at Apple, Avie Tevanian,
- 560
- 00:31:45,625 --> 00:31:48,250
- Oracle's founder,
- Larry Ellison,
- 561
- 00:31:48,333 --> 00:31:51,917
- and a founding investor
- of Oracle, Don Lucas.
- 562
- 00:31:52,000 --> 00:31:54,041
- They conferred
- respectability on Elizabeth,
- 563
- 00:31:54,125 --> 00:31:56,500
- even though they had
- no record to go on,
- 564
- 00:31:56,583 --> 00:31:59,375
- just a vague belief
- that business and medicine
- 565
- 00:31:59,458 --> 00:32:01,542
- were in her blood.
- 566
- 00:32:01,625 --> 00:32:04,375
- I think she probably was 21 years old,
- 567
- 00:32:04,458 --> 00:32:06,166
- had no background
- in business,
- 568
- 00:32:06,250 --> 00:32:09,125
- but her great-grandfather
- was an entrepreneur.
- 569
- 00:32:09,208 --> 00:32:10,434
- So, that's on
- the entrepreneur's side,
- 570
- 00:32:10,458 --> 00:32:11,685
- but she was on
- the medical side.
- 571
- 00:32:11,709 --> 00:32:12,917
- Ah, turns out later
- 572
- 00:32:13,000 --> 00:32:15,500
- the hospital in there,
- where they live
- 573
- 00:32:15,583 --> 00:32:17,750
- is named after her great-uncle,
- 574
- 00:32:17,834 --> 00:32:21,959
- who was involved with medicine,
- so she came by both of these...
- 575
- 00:32:22,458 --> 00:32:24,458
- the two things
- that are necessary here,
- 576
- 00:32:24,542 --> 00:32:27,792
- one medicine
- and the other entrepreneur...
- 577
- 00:32:29,083 --> 00:32:30,458
- quite naturally.
- 578
- 00:32:32,500 --> 00:32:35,667
- I remember the day Elizabeth came in,
- 579
- 00:32:35,750 --> 00:32:37,208
- full of vim and vigor,
- 580
- 00:32:37,291 --> 00:32:40,125
- and said, "I'm dropping
- out of Stanford."
- 581
- 00:32:40,208 --> 00:32:41,583
- And I knew her parents,
- 582
- 00:32:41,667 --> 00:32:44,625
- and I knew her and her brother
- as they were growing up.
- 583
- 00:32:44,709 --> 00:32:47,250
- She was a good friend
- of my daughter's.
- 584
- 00:32:47,333 --> 00:32:48,750
- I said, "Do your
- parents know
- 585
- 00:32:48,834 --> 00:32:50,393
- you're dropping out
- of Stanford?" She said,
- 586
- 00:32:50,417 --> 00:32:53,250
- "Yes, yes!
- And they agree, and it's a great thing.
- 587
- 00:32:53,333 --> 00:32:55,291
- "And I learned at Stanford
- 588
- 00:32:55,375 --> 00:32:57,917
- "how this whole health care
- thing is working,
- 589
- 00:32:58,000 --> 00:32:59,750
- and it's just not."
- 590
- 00:32:59,834 --> 00:33:02,000
- And then she said,
- "I'm going to change health care
- 591
- 00:33:02,083 --> 00:33:04,792
- as we know it."
- I was all over it.
- 592
- 00:33:04,875 --> 00:33:07,750
- I thought that was
- a great opportunity.
- 593
- 00:33:08,333 --> 00:33:10,709
- I mean,
- Elizabeth was a family friend.
- 594
- 00:33:10,792 --> 00:33:13,083
- You'd known her since
- she was a little girl.
- 595
- 00:33:13,166 --> 00:33:14,625
- Did that go
- into your thinking,
- 596
- 00:33:14,709 --> 00:33:16,291
- in terms of your
- initial investment?
- 597
- 00:33:16,375 --> 00:33:20,417
- No. We've been... I've been in
- the venture business a long time.
- 598
- 00:33:20,500 --> 00:33:23,667
- I was the first investor in Tesla,
- first investor in Skype,
- 599
- 00:33:23,750 --> 00:33:26,959
- first investor in Baidu,
- first investor in Hotmail.
- 600
- 00:33:27,041 --> 00:33:28,583
- I always invest early.
- 601
- 00:33:28,667 --> 00:33:30,875
- I invest when I see a vision,
- 602
- 00:33:30,959 --> 00:33:32,333
- I see the opportunity,
- 603
- 00:33:32,417 --> 00:33:36,417
- and I see the person who
- I think can make it there.
- 604
- 00:33:36,500 --> 00:33:38,959
- I mean, we invest in, you know,
- 605
- 00:33:39,041 --> 00:33:42,792
- a girl and a dog,
- or two guys and a cat.
- 606
- 00:33:42,875 --> 00:33:46,083
- We just say, "Is this person
- going to dedicate their life,
- 607
- 00:33:46,166 --> 00:33:49,333
- and make something
- extraordinary happen?"
- 608
- 00:33:49,417 --> 00:33:52,709
- And yes, in that case,
- she was that person.
- 609
- 00:33:55,542 --> 00:33:58,125
- So, the reality is that data
- 610
- 00:33:58,208 --> 00:34:01,041
- just doesn't sit in our mind
- 611
- 00:34:01,125 --> 00:34:03,625
- as much as stories do.
- 612
- 00:34:03,709 --> 00:34:07,417
- It's almost like the glue
- that takes all of the data,
- 613
- 00:34:07,917 --> 00:34:09,500
- and even more important,
- 614
- 00:34:09,583 --> 00:34:13,125
- stories have emotions
- that data doesn't.
- 615
- 00:34:13,208 --> 00:34:15,041
- And emotions get people to...
- 616
- 00:34:15,125 --> 00:34:18,166
- to do all kinds of things,
- good and bad.
- 617
- 00:34:18,250 --> 00:34:23,208
- And if you think about the
- people who invested in her
- 618
- 00:34:23,291 --> 00:34:25,208
- with very little
- amount of data,
- 619
- 00:34:25,291 --> 00:34:28,000
- it's about having an emotional
- appeal and about having trust,
- 620
- 00:34:28,083 --> 00:34:31,291
- and believing the story,
- and being moved by this,
- 621
- 00:34:31,375 --> 00:34:33,500
- and being able to tell
- themselves a story.
- 622
- 00:34:36,750 --> 00:34:39,267
- For 10 years, we did this work.
- We didn't have a website.
- 623
- 00:34:39,291 --> 00:34:41,625
- We never put out
- a press release.
- 624
- 00:34:41,709 --> 00:34:43,625
- It was completely heads down.
- 625
- 00:34:43,709 --> 00:34:46,125
- When we got to a point
- in which we realized
- 626
- 00:34:46,208 --> 00:34:50,041
- that what we were doing
- could serve individuals,
- 627
- 00:34:50,125 --> 00:34:52,166
- I wanted to find the people
- 628
- 00:34:52,250 --> 00:34:55,458
- who were just
- strategically brilliant.
- 629
- 00:34:57,208 --> 00:34:59,625
- General Mattis,
- who was former
- 630
- 00:34:59,709 --> 00:35:02,834
- CENTCON Commander,
- is one of our board members.
- 631
- 00:35:02,917 --> 00:35:04,709
- Dick Kovacevich, who is
- 632
- 00:35:04,792 --> 00:35:07,750
- the former CEO of
- Wells Fargo is another.
- 633
- 00:35:07,834 --> 00:35:10,041
- Sam Nunn has done
- some incredible work
- 634
- 00:35:10,125 --> 00:35:13,458
- on nuclear threats
- as well as biothreats.
- 635
- 00:35:13,542 --> 00:35:15,875
- Bill Perry,
- former secretary of defense.
- 636
- 00:35:15,959 --> 00:35:18,792
- Henry Kissinger,
- former secretary of state.
- 637
- 00:35:18,875 --> 00:35:20,542
- And George Shultz,
- 638
- 00:35:20,625 --> 00:35:23,208
- who was secretary of state
- 639
- 00:35:23,291 --> 00:35:28,000
- and labor
- and secretary of treasury.
- 640
- 00:35:28,083 --> 00:35:30,959
- About three years ago,
- I looked at her and I said, "Well,
- 641
- 00:35:31,041 --> 00:35:33,959
- I'm about to have a meeting with
- a friend of my granddaughter."
- 642
- 00:35:35,583 --> 00:35:37,250
- - Yes.
- - As soon as she started talking,
- 643
- 00:35:37,333 --> 00:35:38,917
- I did a double take...
- 644
- 00:35:39,000 --> 00:35:41,917
- I first met Elizabeth
- in my grandfather's living room.
- 645
- 00:35:42,000 --> 00:35:44,184
- So, he had called me up and
- said that he was going to have
- 646
- 00:35:44,208 --> 00:35:47,417
- some brilliant woman over
- to have a discussion.
- 647
- 00:35:47,500 --> 00:35:50,083
- He thought that
- I would be interested
- 648
- 00:35:50,166 --> 00:35:52,250
- in coming,
- so I went to his house.
- 649
- 00:35:52,333 --> 00:35:54,250
- It was me,
- my grandfather, Elizabeth,
- 650
- 00:35:54,333 --> 00:35:56,917
- and Dianne Feinstein
- was there as well.
- 651
- 00:35:57,500 --> 00:36:01,375
- Elizabeth kind of pitched
- her dream of changing the way
- 652
- 00:36:01,458 --> 00:36:04,166
- diagnostics is done, really
- revolutionizing the field.
- 653
- 00:36:04,250 --> 00:36:06,750
- Yeah, I was totally
- gung-ho about Theranos.
- 654
- 00:36:06,834 --> 00:36:09,625
- I was really excited about
- what she was talking about.
- 655
- 00:36:09,709 --> 00:36:12,208
- I really wanted to know
- what the technology was.
- 656
- 00:36:12,834 --> 00:36:14,667
- And I actually asked her,
- in that meeting,
- 657
- 00:36:14,750 --> 00:36:16,458
- if I could intern
- there over the summer.
- 658
- 00:36:16,542 --> 00:36:18,583
- I said,
- do you guys take interns?
- 659
- 00:36:18,667 --> 00:36:21,208
- Like, I want to work on this.
- This sounds amazing.
- 660
- 00:36:21,291 --> 00:36:23,333
- We think that...
- 661
- 00:36:24,041 --> 00:36:25,792
- there's going to be a revolution
- 662
- 00:36:25,875 --> 00:36:27,583
- in preventive medicine.
- 663
- 00:36:27,667 --> 00:36:31,166
- I mean, he had a really close
- relationship with Elizabeth.
- 664
- 00:36:31,250 --> 00:36:34,750
- She was almost like...
- becoming part of the family.
- 665
- 00:36:34,834 --> 00:36:38,458
- She was coming to our birthday
- parties and Christmases.
- 666
- 00:36:38,542 --> 00:36:41,125
- We think this is one
- of the most optimistic things
- 667
- 00:36:41,208 --> 00:36:42,625
- out there
- 668
- 00:36:42,709 --> 00:36:45,875
- about the health care system
- and its costs and its problems.
- 669
- 00:36:45,959 --> 00:36:49,709
- You talk to George Shultz.
- He's a very impressive man.
- 670
- 00:36:49,792 --> 00:36:52,834
- And I was impressed that he
- adopted her like a daughter.
- 671
- 00:36:52,917 --> 00:36:54,625
- He really believed in her.
- 672
- 00:36:54,709 --> 00:36:57,166
- From the outside,
- all you're thinking is,
- 673
- 00:36:57,250 --> 00:36:59,000
- wow,
- what a board!
- 674
- 00:36:59,083 --> 00:37:01,000
- Right? I mean,
- it's just impressive.
- 675
- 00:37:01,083 --> 00:37:03,583
- And they were really...
- And I talked to most of them.
- 676
- 00:37:03,667 --> 00:37:05,787
- They were impressed with...
- really impressed with her.
- 677
- 00:37:05,834 --> 00:37:07,976
- This is General Mattis.
- I assume we're on the record,
- 678
- 00:37:08,000 --> 00:37:10,101
- unless you tell me not, and
- I'll shut off this recorder.
- 679
- 00:37:10,125 --> 00:37:11,625
- - But...
- - Okay.
- 680
- 00:37:11,709 --> 00:37:13,750
- When you think of Elizabeth,
- 681
- 00:37:13,834 --> 00:37:15,834
- what are the first words
- that come to your mind?
- 682
- 00:37:15,917 --> 00:37:18,500
- First is integrity,
- 683
- 00:37:18,583 --> 00:37:20,542
- uh, competence,
- 684
- 00:37:20,625 --> 00:37:23,792
- and competence is both
- technical, scientific,
- 685
- 00:37:23,875 --> 00:37:26,667
- but also focused
- on human rights
- 686
- 00:37:26,750 --> 00:37:29,208
- in the most classical
- sense of what
- 687
- 00:37:29,291 --> 00:37:30,834
- human rights are about.
- 688
- 00:37:30,917 --> 00:37:33,917
- And all of a sudden,
- you have the ability to know
- 689
- 00:37:34,000 --> 00:37:36,375
- if someone is ill
- or not. I mean,
- 690
- 00:37:36,458 --> 00:37:39,583
- literally,
- within minutes of taking...
- 691
- 00:37:39,667 --> 00:37:41,875
- you know, a drop of blood.
- 692
- 00:37:41,959 --> 00:37:44,375
- And I mean, she is really...
- 693
- 00:37:44,458 --> 00:37:47,959
- a revolutionary
- in the truest sense.
- 694
- 00:37:49,291 --> 00:37:52,542
- It was quite amazing to spend
- time with these people.
- 695
- 00:37:52,625 --> 00:37:54,875
- They were talking about her
- as if she were Beethoven.
- 696
- 00:38:00,959 --> 00:38:03,375
- As if she was
- this rare creature
- 697
- 00:38:03,458 --> 00:38:07,041
- that maybe one in a century
- or two in a century come along,
- 698
- 00:38:07,125 --> 00:38:09,834
- who really can
- change the world.
- 699
- 00:38:12,750 --> 00:38:14,875
- And I remember when
- I interviewed Henry Kissinger,
- 700
- 00:38:14,959 --> 00:38:17,083
- I didn't trust him
- on medical stuff,
- 701
- 00:38:17,166 --> 00:38:20,458
- not to mention on Cambodia,
- but...
- 702
- 00:38:20,542 --> 00:38:21,917
- But when I asked him about her,
- 703
- 00:38:22,000 --> 00:38:23,208
- he described...
- 704
- 00:38:23,291 --> 00:38:25,208
- Excellent businesswoman.
- 705
- 00:38:25,291 --> 00:38:28,709
- Let me see that I can put
- this on speaker for a minute.
- 706
- 00:38:28,792 --> 00:38:31,000
- - Be easier for me.
- - Okay.
- 707
- 00:38:34,166 --> 00:38:36,542
- Yeah, but
- I don't know how to do that.
- 708
- 00:38:38,000 --> 00:38:39,875
- You put it on ho...
- 709
- 00:38:39,959 --> 00:38:42,542
- - How about it now?
- - I hear you loud and clear.
- 710
- 00:38:42,625 --> 00:38:44,166
- - You okay?
- - Perfect.
- 711
- 00:38:44,250 --> 00:38:47,333
- What's your impression
- of how she runs the board?
- 712
- 00:38:56,792 --> 00:39:00,291
- I'm told you once said
- that these board meetings,
- 713
- 00:39:00,375 --> 00:39:02,333
- which go on all day...
- 714
- 00:39:10,959 --> 00:39:13,159
- You know,
- whatever you think of Henry Kissinger,
- 715
- 00:39:13,208 --> 00:39:16,625
- he's met a lot of leaders,
- he's met a lot of world leaders,
- 716
- 00:39:16,709 --> 00:39:18,291
- he met a lot
- of corporate leaders.
- 717
- 00:39:18,375 --> 00:39:20,041
- I thought he might be a judge,
- 718
- 00:39:20,125 --> 00:39:22,625
- but the truth is that
- 719
- 00:39:22,709 --> 00:39:26,458
- none of these people were really
- in a position to know what...
- 720
- 00:39:26,542 --> 00:39:29,792
- - To judge 'cause they didn't have the qualifications.
- - Yeah. No. No.
- 721
- 00:39:29,875 --> 00:39:32,041
- She didn't really
- want scientific input
- 722
- 00:39:32,125 --> 00:39:34,333
- from what I could determine.
- 723
- 00:39:34,417 --> 00:39:36,667
- Engineering a bit more
- 724
- 00:39:36,750 --> 00:39:38,792
- 'cause she was inventing
- an engineering device,
- 725
- 00:39:38,875 --> 00:39:40,250
- but not medicine.
- 726
- 00:39:40,333 --> 00:39:43,333
- She aligned herself
- with very powerful older men
- 727
- 00:39:43,417 --> 00:39:47,750
- who seemed to succumb
- to a certain charm, and...
- 728
- 00:39:47,834 --> 00:39:51,375
- those powerful men
- could influence people
- 729
- 00:39:51,458 --> 00:39:52,917
- in the government,
- 730
- 00:39:53,000 --> 00:39:55,458
- influence
- the Department of Defense.
- 731
- 00:39:55,542 --> 00:39:59,375
- When I asked her was this all
- about getting government contracts,
- 732
- 00:39:59,458 --> 00:40:01,667
- she danced around
- my questions about that.
- 733
- 00:40:01,750 --> 00:40:04,000
- Everything that we're doing
- 734
- 00:40:04,083 --> 00:40:07,333
- may go into certain work
- we do for the military,
- 735
- 00:40:07,417 --> 00:40:09,834
- which we really couldn't
- put on the record.
- 736
- 00:40:09,917 --> 00:40:12,166
- Well, off the record,
- we were doing some work
- 737
- 00:40:12,250 --> 00:40:14,834
- for the military,
- which we can talk about off the record.
- 738
- 00:40:14,917 --> 00:40:16,667
- Why would that be off the record?
- 739
- 00:40:16,750 --> 00:40:19,000
- You know, generally,
- our philosophy on these things is
- 740
- 00:40:19,083 --> 00:40:21,500
- talk about it if there's
- a purpose to talking about it,
- 741
- 00:40:21,583 --> 00:40:22,750
- and there just...
- 742
- 00:40:22,834 --> 00:40:25,000
- So,
- could you say anything about
- 743
- 00:40:25,083 --> 00:40:27,458
- the military contracts
- you have? I mean...
- 744
- 00:40:28,750 --> 00:40:31,375
- No.
- 745
- 00:40:31,458 --> 00:40:34,083
- When you... I'm going to make
- you feel guilty at some point.
- 746
- 00:40:34,166 --> 00:40:38,083
- You already have.
- You're good at it too.
- 747
- 00:40:38,166 --> 00:40:40,542
- In conversations,
- Elizabeth suggested
- 748
- 00:40:40,625 --> 00:40:43,041
- that she had contracts
- with the military.
- 749
- 00:40:43,125 --> 00:40:44,834
- In a mock-up of
- marketing materials,
- 750
- 00:40:44,917 --> 00:40:47,750
- Theranos invented a quote
- from General Mattis
- 751
- 00:40:47,834 --> 00:40:49,709
- about a battle plan
- to use Edisons
- 752
- 00:40:49,792 --> 00:40:52,583
- on wounded soldiers
- in combat zones,
- 753
- 00:40:52,667 --> 00:40:54,417
- but this never happened.
- 754
- 00:40:54,500 --> 00:40:57,875
- Before permitting Theranos to
- use the machines on soldiers,
- 755
- 00:40:57,959 --> 00:41:01,000
- Pentagon officials wanted
- to run their own tests,
- 756
- 00:41:01,083 --> 00:41:02,583
- but Elizabeth declined.
- 757
- 00:41:02,667 --> 00:41:05,250
- She had a policy of
- controlling demonstrations
- 758
- 00:41:05,333 --> 00:41:07,083
- and tightly guarding access
- 759
- 00:41:07,166 --> 00:41:09,458
- to the Edison prototypes.
- 760
- 00:41:09,542 --> 00:41:10,875
- I pressed them
- 761
- 00:41:10,959 --> 00:41:14,083
- repeatedly, and I wasn't
- allowed, and finally,
- 762
- 00:41:14,166 --> 00:41:17,375
- I persisted in asking.
- "I need to see the machine."
- 763
- 00:41:17,458 --> 00:41:19,542
- And she said to me,
- 764
- 00:41:19,625 --> 00:41:21,583
- "All right, we'll let
- you see the machine,
- 765
- 00:41:21,667 --> 00:41:25,625
- but you have to agree not
- to describe the machine."
- 766
- 00:41:34,583 --> 00:41:36,792
- It was downstairs,
- 767
- 00:41:36,875 --> 00:41:40,625
- in an area you couldn't see
- from all the glassed offices.
- 768
- 00:41:46,166 --> 00:41:49,250
- The lab is a large,
- labyrinthian place
- 769
- 00:41:49,333 --> 00:41:51,875
- bustling with chemists
- and technicians,
- 770
- 00:41:51,959 --> 00:41:54,041
- and housing rows of machines,
- 771
- 00:41:54,125 --> 00:41:56,458
- each easy for
- a single person to lift,
- 772
- 00:41:56,542 --> 00:41:59,417
- in which the container
- of blood is placed.
- 773
- 00:42:00,709 --> 00:42:03,125
- What exactly happens
- in the machine
- 774
- 00:42:03,208 --> 00:42:05,291
- is treated as a state secret,
- 775
- 00:42:05,375 --> 00:42:07,917
- and Holmes's description
- of the process
- 776
- 00:42:08,000 --> 00:42:10,000
- was comically vague.
- 777
- 00:42:10,917 --> 00:42:14,625
- A chemistry is performed,
- 778
- 00:42:14,709 --> 00:42:16,750
- so a chemical reaction occurs
- 779
- 00:42:16,834 --> 00:42:18,750
- and generates a signal
- 780
- 00:42:18,834 --> 00:42:22,083
- from the chemical interaction
- with the sample,
- 781
- 00:42:22,166 --> 00:42:25,083
- which is then translated
- into a result...
- 782
- 00:42:25,166 --> 00:42:27,333
- "Which is then
- reviewed by certified
- 783
- 00:42:27,417 --> 00:42:29,291
- laboratory personnel."
- 784
- 00:42:30,000 --> 00:42:33,625
- End quote. She added
- that thanks to, quote...
- 785
- 00:42:33,709 --> 00:42:35,458
- Miniaturization
- 786
- 00:42:35,542 --> 00:42:39,667
- "and associated automation
- that we're able to...
- 787
- 00:42:39,750 --> 00:42:41,834
- handle these tiny samples.
- 788
- 00:42:58,041 --> 00:43:00,667
- All right, so...
- 789
- 00:43:00,750 --> 00:43:02,542
- Comments? Sunny?
- 790
- 00:43:04,083 --> 00:43:06,417
- So, I just want
- to expand a little bit
- 791
- 00:43:06,500 --> 00:43:08,667
- on a comment
- that Elizabeth made.
- 792
- 00:43:08,750 --> 00:43:12,250
- You know, we are a very
- conservative company
- 793
- 00:43:12,333 --> 00:43:13,917
- because we think
- 794
- 00:43:14,000 --> 00:43:17,542
- that you should get things done
- before you talk about them.
- 795
- 00:43:17,625 --> 00:43:20,208
- Right? And that's
- the culture we have created.
- 796
- 00:43:20,291 --> 00:43:21,792
- So, I just want
- all of you to remember
- 797
- 00:43:21,875 --> 00:43:23,795
- that when we come to work
- every day that we carry
- 798
- 00:43:23,834 --> 00:43:27,500
- that sense of mission in your
- hearts every single day...
- 799
- 00:43:27,583 --> 00:43:29,208
- Sunny was very successful
- 800
- 00:43:29,291 --> 00:43:31,709
- in the late '90s
- with a tech company
- 801
- 00:43:31,792 --> 00:43:33,375
- that sold for a lot of money.
- 802
- 00:43:33,458 --> 00:43:35,643
- He seemed kind of like a Mark Cuban
- character, potentially, to me,
- 803
- 00:43:35,667 --> 00:43:38,017
- in some ways, where he was at
- the right place, the right time.
- 804
- 00:43:38,041 --> 00:43:40,917
- Made a lot of money.
- 805
- 00:43:41,000 --> 00:43:43,709
- His expertise was
- software and IT.
- 806
- 00:43:43,792 --> 00:43:45,552
- What we are doing is
- really, really difficult
- 807
- 00:43:45,625 --> 00:43:48,750
- because we're going
- against an entire system
- 808
- 00:43:48,834 --> 00:43:51,542
- that doesn't believe
- that prevention is possible.
- 809
- 00:43:51,625 --> 00:43:54,917
- I always felt like Sunny
- was making a deal, you know?
- 810
- 00:43:55,000 --> 00:43:58,417
- Like, he knew the technology,
- but just enough to sell it.
- 811
- 00:43:58,500 --> 00:44:02,041
- To him, this was another home
- run that he was going to hit.
- 812
- 00:44:03,417 --> 00:44:05,709
- He was 49 and she was 30,
- 813
- 00:44:05,792 --> 00:44:08,917
- but she was the dominant
- figure in that relationship.
- 814
- 00:44:09,000 --> 00:44:10,875
- And when he talked about her,
- 815
- 00:44:10,959 --> 00:44:12,959
- he talked about her
- in a very deferential way,
- 816
- 00:44:13,041 --> 00:44:14,142
- that she was kind of a genius.
- 817
- 00:44:14,166 --> 00:44:16,583
- When he spoke about Elizabeth,
- 818
- 00:44:16,667 --> 00:44:20,583
- he was really...
- reverential.
- 819
- 00:44:20,667 --> 00:44:25,208
- "Elizabeth is the most important
- inventor of our times."
- 820
- 00:44:29,458 --> 00:44:33,375
- You know, I think Sunny saw her as
- this iconic figure that he could never be,
- 821
- 00:44:33,458 --> 00:44:39,333
- and so he, I think, found this vehicle
- for him to advance himself in her,
- 822
- 00:44:39,417 --> 00:44:41,542
- and, you know, she was
- on board for it, too.
- 823
- 00:44:44,208 --> 00:44:47,917
- She lived with him
- at some condo in Palo Alto.
- 824
- 00:44:48,000 --> 00:44:50,291
- I thought that
- there was definitely
- 825
- 00:44:50,375 --> 00:44:52,542
- something going on
- behind the scenes there.
- 826
- 00:44:52,625 --> 00:44:54,125
- They certainly
- would leave together,
- 827
- 00:44:54,208 --> 00:44:56,166
- they'd come in
- at similar times.
- 828
- 00:44:56,250 --> 00:44:58,083
- They're always
- talking to each other,
- 829
- 00:44:58,166 --> 00:45:00,375
- offline, online,
- in meetings,
- 830
- 00:45:00,458 --> 00:45:02,875
- outside of meetings.
- They were very close.
- 831
- 00:45:04,208 --> 00:45:06,750
- It wasn't uncommon
- for Elizabeth and Sunny
- 832
- 00:45:06,834 --> 00:45:09,125
- to go to the Silicon Valley
- airport
- 833
- 00:45:09,208 --> 00:45:10,333
- and go off to some meeting.
- 834
- 00:45:10,417 --> 00:45:12,542
- They were going to go
- sell this thing,
- 835
- 00:45:12,625 --> 00:45:15,208
- go make a deal.
- 836
- 00:45:21,417 --> 00:45:25,458
- Without disclosing their
- romantic relationship to investors,
- 837
- 00:45:25,542 --> 00:45:29,000
- Elizabeth and Sunny flew off
- together to corporate presentations,
- 838
- 00:45:29,083 --> 00:45:33,458
- touting the potential
- of the Edison prototypes.
- 839
- 00:45:33,542 --> 00:45:36,917
- One company, Walgreens,
- loved the pitch.
- 840
- 00:45:38,041 --> 00:45:39,792
- In this 2010 PowerPoint,
- 841
- 00:45:39,875 --> 00:45:43,041
- Theranos showcased
- an early version of Edison,
- 842
- 00:45:43,125 --> 00:45:44,667
- a portable
- blood testing machine
- 843
- 00:45:44,750 --> 00:45:48,917
- that could be deployed in
- pharmacies all over the world.
- 844
- 00:45:49,000 --> 00:45:50,625
- Theranos boasted
- the device could,
- 845
- 00:45:50,709 --> 00:45:52,792
- "eliminate the need for a lab,"
- 846
- 00:45:52,875 --> 00:45:55,291
- by doing up
- to 200 tests in minutes
- 847
- 00:45:55,375 --> 00:45:58,333
- from a finger-prick drop
- of capillary blood.
- 848
- 00:45:58,417 --> 00:46:02,000
- It wasn't true then,
- but once Walgreens signed a contract,
- 849
- 00:46:02,083 --> 00:46:04,959
- Theranos struggled to make
- it true, constantly changing
- 850
- 00:46:05,041 --> 00:46:08,291
- the machine's color,
- shape, and mechanics.
- 851
- 00:46:08,375 --> 00:46:10,583
- Strangely,
- Walgreens never looked
- 852
- 00:46:10,667 --> 00:46:13,083
- inside any version
- of the magic box
- 853
- 00:46:13,166 --> 00:46:17,291
- to see if it could deliver
- what Theranos promised.
- 854
- 00:46:17,375 --> 00:46:19,375
- There's a great Martin Luther King quote.
- 855
- 00:46:19,458 --> 00:46:21,792
- "Take the first step in faith.
- 856
- 00:46:21,875 --> 00:46:23,583
- "You don't have to see
- the whole staircase,
- 857
- 00:46:23,667 --> 00:46:25,208
- just take the first step."
- Right?
- 858
- 00:46:25,291 --> 00:46:28,291
- And this is...
- this is the first step.
- 859
- 00:46:29,291 --> 00:46:31,750
- So, talk to me a little
- bit about the Edison machine.
- 860
- 00:46:31,834 --> 00:46:34,000
- How would you say it
- was working in terms of
- 861
- 00:46:34,083 --> 00:46:35,792
- the vision versus
- the reality?
- 862
- 00:46:39,000 --> 00:46:40,208
- Uh, poorly.
- 863
- 00:46:41,542 --> 00:46:43,222
- We couldn't regulate
- temperature very well.
- 864
- 00:46:43,250 --> 00:46:46,083
- We couldn't reproducibly
- transfer fluids.
- 865
- 00:46:46,166 --> 00:46:48,458
- We had all sorts
- of design changes constantly
- 866
- 00:46:48,542 --> 00:46:49,935
- that we were trying
- to fight against,
- 867
- 00:46:49,959 --> 00:46:52,709
- so it was a comedy of errors
- in a lot of ways.
- 868
- 00:46:52,792 --> 00:46:54,875
- The original concept was to make a machine
- 869
- 00:46:54,959 --> 00:46:57,333
- that, at least then,
- the chemists could work on
- 870
- 00:46:57,417 --> 00:46:59,166
- to further develop chemistry.
- 871
- 00:46:59,250 --> 00:47:02,291
- Over time, we were
- able to run a sequence
- 872
- 00:47:02,375 --> 00:47:04,125
- and we were able
- to get results.
- 873
- 00:47:04,208 --> 00:47:07,000
- Getting results
- means, you know,
- 874
- 00:47:07,083 --> 00:47:10,250
- I get a signal proportional
- to what I'm putting in.
- 875
- 00:47:10,333 --> 00:47:12,750
- It doesn't mean it's ready for prime time,
- right?
- 876
- 00:47:16,625 --> 00:47:19,750
- You're handling a
- lot of fluid in the machine.
- 877
- 00:47:19,834 --> 00:47:24,458
- Things got blood spilled
- all over them and got gunky.
- 878
- 00:47:24,542 --> 00:47:26,125
- Some of the donors
- that we had were,
- 879
- 00:47:26,208 --> 00:47:27,917
- you know,
- just people off the street
- 880
- 00:47:28,000 --> 00:47:30,709
- who need money,
- and I imagine that, you know,
- 881
- 00:47:30,792 --> 00:47:32,417
- there probably
- was a fair amount
- 882
- 00:47:32,500 --> 00:47:34,125
- of hepatitis
- and things like that.
- 883
- 00:47:34,208 --> 00:47:37,458
- And the device would freeze up
- in the middle of running a test,
- 884
- 00:47:37,542 --> 00:47:41,375
- and then I would have to reach
- in there with my hands.
- 885
- 00:47:41,458 --> 00:47:43,458
- There were needles
- within the device
- 886
- 00:47:43,542 --> 00:47:45,583
- that could puncture skin,
- 887
- 00:47:45,667 --> 00:47:47,000
- and there's reagents
- 888
- 00:47:47,083 --> 00:47:49,834
- and blood and everything
- spilling all over the place.
- 889
- 00:47:49,917 --> 00:47:52,458
- Blood that's just sitting there
- in the bottom of the vessel,
- 890
- 00:47:52,542 --> 00:47:55,542
- evaporating into
- the air in the room.
- 891
- 00:47:55,625 --> 00:47:57,792
- It was a mess inside.
- 892
- 00:47:57,875 --> 00:48:00,208
- Pieces of the device would literally fall off
- 893
- 00:48:00,291 --> 00:48:01,750
- in the middle of testing.
- 894
- 00:48:01,834 --> 00:48:03,667
- Centrifuges exploding
- inside of it
- 895
- 00:48:03,750 --> 00:48:06,083
- and things like that.
- 896
- 00:48:06,166 --> 00:48:07,810
- Obviously,
- they didn't want anybody
- 897
- 00:48:07,834 --> 00:48:10,542
- to actually see what
- was going on in there.
- 898
- 00:48:12,291 --> 00:48:14,834
- So, when we had demos,
- they would bring investors
- 899
- 00:48:14,917 --> 00:48:18,625
- or executives from some company
- to a room which would have
- 900
- 00:48:18,709 --> 00:48:21,000
- different styles of Edison
- they were prototyping.
- 901
- 00:48:25,875 --> 00:48:28,041
- They would do a fingerstick
- on the executives,
- 902
- 00:48:28,125 --> 00:48:30,417
- so they'd take
- a fingerstick of blood.
- 903
- 00:48:32,500 --> 00:48:35,125
- They would put the blood
- into the cartridge,
- 904
- 00:48:35,208 --> 00:48:37,834
- and then they would put
- the cartridge into this Edison.
- 905
- 00:48:42,500 --> 00:48:44,893
- They'd walk the executives out of
- the room to go give them a tour,
- 906
- 00:48:44,917 --> 00:48:46,893
- or to go have a meeting,
- or go have lunch or whatever,
- 907
- 00:48:46,917 --> 00:48:49,500
- and immediately afterwards,
- an engineer would run in,
- 908
- 00:48:49,583 --> 00:48:51,423
- grab the cartridge
- and bring it out to the lab,
- 909
- 00:48:51,458 --> 00:48:55,750
- where my team would do
- the assays at the bench.
- 910
- 00:48:55,834 --> 00:48:59,291
- We were on call,
- so this could be done in an hour.
- 911
- 00:48:59,375 --> 00:49:01,875
- We got reasonable data
- every time,
- 912
- 00:49:01,959 --> 00:49:03,625
- and then we would
- get those results,
- 913
- 00:49:03,709 --> 00:49:06,291
- the engineer would run
- into the room with the results,
- 914
- 00:49:06,375 --> 00:49:08,184
- and these guys would come
- back in and they'd say,
- 915
- 00:49:08,208 --> 00:49:10,583
- "Well, here's your results
- from running our tests."
- 916
- 00:49:13,959 --> 00:49:16,875
- We had listed on the webpage,
- like, 200 different assays,
- 917
- 00:49:16,959 --> 00:49:21,458
- but we had no more than half of those
- actually validated to be working,
- 918
- 00:49:21,542 --> 00:49:25,250
- even in the lab at that point,
- let alone on the Edisons.
- 919
- 00:49:25,333 --> 00:49:28,083
- Because it's trying to do multiple analyses,
- 920
- 00:49:28,166 --> 00:49:31,250
- you need so much hardware
- inside the machine,
- 921
- 00:49:31,333 --> 00:49:33,750
- it was totally impractical.
- 922
- 00:49:33,834 --> 00:49:35,792
- They were very adamant about
- 923
- 00:49:35,875 --> 00:49:39,250
- the machine being this big.
- It's gotta be this big.
- 924
- 00:49:39,333 --> 00:49:41,125
- And I said,
- 925
- 00:49:41,834 --> 00:49:43,291
- "We can't do that.
- 926
- 00:49:43,375 --> 00:49:44,750
- "The laws of physics just
- 927
- 00:49:44,834 --> 00:49:46,917
- "are not going to permit
- us to cram all the stuff
- 928
- 00:49:47,000 --> 00:49:49,583
- "that we've decided needs to go
- in there into this little box.
- 929
- 00:49:49,667 --> 00:49:52,250
- Can the box be bigger?"
- 930
- 00:49:52,333 --> 00:49:55,333
- And a common
- response at Theranos
- 931
- 00:49:55,417 --> 00:49:56,750
- was something
- along the lines
- 932
- 00:49:56,834 --> 00:49:58,208
- of, "Well, maybe
- you're not...
- 933
- 00:49:58,291 --> 00:50:00,458
- "maybe you're not a
- Silicon Valley person.
- 934
- 00:50:00,542 --> 00:50:02,823
- "You should go work for some
- other company if you don't...
- 935
- 00:50:02,875 --> 00:50:04,142
- "if you don't
- believe in the vision
- 936
- 00:50:04,166 --> 00:50:05,834
- of the product."
- 937
- 00:50:05,917 --> 00:50:07,375
- And what would start off
- 938
- 00:50:07,458 --> 00:50:10,542
- as a very serious brainstorming
- meeting would turn into
- 939
- 00:50:10,625 --> 00:50:12,250
- a two-hour conversation about
- 940
- 00:50:12,333 --> 00:50:15,625
- the name of the cloud that's
- going to process the information.
- 941
- 00:50:15,709 --> 00:50:18,959
- It's like, time out. How big
- does this box need to be
- 942
- 00:50:19,041 --> 00:50:20,792
- to abide by the laws
- of thermodynamics,
- 943
- 00:50:20,875 --> 00:50:22,792
- and actually function,
- and saves people's lives?
- 944
- 00:50:22,875 --> 00:50:26,166
- Maybe that's more important
- than the name of the cloud
- 945
- 00:50:26,250 --> 00:50:28,208
- that processes
- the information,
- 946
- 00:50:28,291 --> 00:50:30,542
- which I think ended up
- being Yoda or something.
- 947
- 00:50:31,083 --> 00:50:33,709
- - Was it Yoda?
- - I think so.
- 948
- 00:50:33,792 --> 00:50:37,500
- What's your favorite
- sound from the movie Star Wars?
- 949
- 00:50:38,333 --> 00:50:39,792
- Yoda.
- 950
- 00:50:39,875 --> 00:50:41,792
- What does Yoda sound like?
- 951
- 00:50:41,875 --> 00:50:45,000
- Yoda sounds like,
- "Do or do not. There is no try."
- 952
- 00:50:47,500 --> 00:50:51,333
- You can't just bend your
- way around the laws of physics.
- 953
- 00:50:51,417 --> 00:50:53,583
- You can't just have a
- great marketing campaign,
- 954
- 00:50:53,667 --> 00:50:55,500
- and then get around
- these things.
- 955
- 00:50:57,583 --> 00:51:00,333
- Sunny and Elizabeth,
- they didn't care
- 956
- 00:51:00,417 --> 00:51:02,917
- that we figure out what's
- not working, or make sure
- 957
- 00:51:03,000 --> 00:51:06,125
- that we can actually solve
- these problems in a real way.
- 958
- 00:51:06,208 --> 00:51:09,041
- They always seemed to
- think that everything could happen
- 959
- 00:51:09,125 --> 00:51:10,917
- very fast,
- and if you said no,
- 960
- 00:51:11,000 --> 00:51:13,000
- then they just went around
- to find the next person
- 961
- 00:51:13,083 --> 00:51:14,125
- who would say yes.
- 962
- 00:51:14,792 --> 00:51:17,667
- And generally, they tended
- to start become younger
- 963
- 00:51:17,750 --> 00:51:19,667
- and less experienced, right?
- 964
- 00:51:19,750 --> 00:51:21,583
- "We're going to disrupt.
- We don't want people
- 965
- 00:51:21,667 --> 00:51:23,959
- "who are stuck in
- the old ways of actually,
- 966
- 00:51:24,041 --> 00:51:26,375
- "you know, validating
- experiments, and, you know,
- 967
- 00:51:26,458 --> 00:51:29,667
- doing things properly
- with documentation."
- 968
- 00:51:31,959 --> 00:51:34,625
- One of those people
- who wanted things done properly
- 969
- 00:51:34,709 --> 00:51:36,125
- was Ian Gibbons.
- 970
- 00:51:36,208 --> 00:51:39,208
- The first experienced
- scientist hired by Theranos,
- 971
- 00:51:39,291 --> 00:51:41,250
- he was an expert
- in blood testing
- 972
- 00:51:41,333 --> 00:51:44,417
- and had done much of the work
- on the company's key patents,
- 973
- 00:51:44,500 --> 00:51:47,291
- to which Elizabeth
- had attached her name.
- 974
- 00:51:48,125 --> 00:51:50,500
- Ian was a Cambridge PhD.
- 975
- 00:51:50,583 --> 00:51:53,500
- He knew things the rest
- of us didn't know.
- 976
- 00:51:53,583 --> 00:51:56,959
- He would work with some of the
- younger chemists and scientists,
- 977
- 00:51:57,041 --> 00:51:58,434
- and help them
- with their experiments,
- 978
- 00:51:58,458 --> 00:51:59,959
- help them to design
- their experiments,
- 979
- 00:52:00,041 --> 00:52:02,417
- help them to analyze their data,
- interpret their data, etc.
- 980
- 00:52:02,500 --> 00:52:05,709
- He was just a wealth
- of knowledge, and it was,
- 981
- 00:52:05,792 --> 00:52:08,792
- you know, at the time, it kind of evolved,
- I knew him for two years,
- 982
- 00:52:08,875 --> 00:52:12,041
- and my opinion of him evolved
- only just to be better
- 983
- 00:52:12,125 --> 00:52:14,476
- because he was just trying to
- make the best of his situation.
- 984
- 00:52:14,500 --> 00:52:18,458
- Like, what I got to see there,
- I got to see how marginalized he was.
- 985
- 00:52:19,291 --> 00:52:20,834
- So, in about 2012,
- 986
- 00:52:20,917 --> 00:52:22,583
- Ian didn't have
- an office anymore.
- 987
- 00:52:22,667 --> 00:52:24,834
- I think he felt
- slighted by that.
- 988
- 00:52:24,917 --> 00:52:28,709
- He wasn't involved
- with decision-making.
- 989
- 00:52:28,792 --> 00:52:32,166
- He would look at data and he
- said things were not working.
- 990
- 00:52:32,500 --> 00:52:35,375
- Ian really got into
- bad shape with Sunny...
- 991
- 00:52:35,458 --> 00:52:37,250
- both Sunny and Elizabeth,
- 992
- 00:52:37,333 --> 00:52:41,333
- because there's so many things
- wrong with that technology.
- 993
- 00:52:42,625 --> 00:52:46,417
- And isn't that the point of
- someone like that being there,
- 994
- 00:52:46,500 --> 00:52:49,792
- to tell them why
- it wasn't going to work?
- 995
- 00:52:49,875 --> 00:52:53,166
- In early 2013,
- Theranos tried to prevent Ian
- 996
- 00:52:53,250 --> 00:52:55,875
- from having to testify
- in a patent lawsuit.
- 997
- 00:52:55,959 --> 00:52:58,125
- If he were to give evidence
- that Elizabeth wasn't
- 998
- 00:52:58,208 --> 00:52:59,709
- the inventor she claimed to be,
- 999
- 00:52:59,792 --> 00:53:02,959
- some of the company's
- patents might be invalidated.
- 1000
- 00:53:03,041 --> 00:53:05,041
- As the date of his
- deposition approached,
- 1001
- 00:53:05,125 --> 00:53:08,166
- he drank heavily and fell
- into a deep depression,
- 1002
- 00:53:08,250 --> 00:53:11,375
- afraid that honesty
- might cost him his job.
- 1003
- 00:53:12,166 --> 00:53:14,291
- Some time in 2013,
- 1004
- 00:53:14,375 --> 00:53:17,000
- he wasn't in work anymore.
- 1005
- 00:53:17,083 --> 00:53:18,542
- Elizabeth told him
- to stay at home
- 1006
- 00:53:18,625 --> 00:53:20,750
- because I guess he was
- saying things aren't working.
- 1007
- 00:53:20,834 --> 00:53:22,208
- That was what
- the story I was told.
- 1008
- 00:53:22,291 --> 00:53:25,959
- Ian asked me if he thought
- that he was going to be fired,
- 1009
- 00:53:26,041 --> 00:53:28,041
- and I told him yes.
- 1010
- 00:53:28,125 --> 00:53:29,834
- Unfortunately.
- 1011
- 00:53:29,917 --> 00:53:32,959
- And that was the night
- he killed himself.
- 1012
- 00:53:33,041 --> 00:53:37,166
- He was so distraught
- over this stupid, um...
- 1013
- 00:53:37,250 --> 00:53:39,625
- inter... uh, this...
- 1014
- 00:53:39,709 --> 00:53:42,542
- patent case,
- misappropriation case,
- 1015
- 00:53:43,083 --> 00:53:48,333
- and... not knowing what he was going
- to do with the rest of his life,
- 1016
- 00:53:48,417 --> 00:53:50,959
- and that's why
- he committed suicide.
- 1017
- 00:53:51,667 --> 00:53:53,583
- What was the reaction of the company
- 1018
- 00:53:53,667 --> 00:53:56,166
- after Ian
- committed suicide?
- 1019
- 00:53:56,250 --> 00:54:00,000
- Um, I don't know because
- they never communicated with me,
- 1020
- 00:54:00,083 --> 00:54:04,667
- except to ask me to send back
- his confidential stuff.
- 1021
- 00:54:06,917 --> 00:54:11,291
- I brought back his documents
- that he had at home,
- 1022
- 00:54:13,041 --> 00:54:15,291
- and left them
- at the front desk.
- 1023
- 00:54:16,625 --> 00:54:19,417
- Did you ever hear
- from Elizabeth Holmes again?
- 1024
- 00:54:19,500 --> 00:54:21,125
- No.
- 1025
- 00:54:23,125 --> 00:54:26,208
- If today were my last day on this Earth,
- 1026
- 00:54:26,291 --> 00:54:29,834
- and I could say that
- 1027
- 00:54:29,917 --> 00:54:31,542
- the people who've
- gone through hell
- 1028
- 00:54:31,625 --> 00:54:33,750
- in being able to just
- get the test done
- 1029
- 00:54:33,834 --> 00:54:36,959
- that they need to get care
- now don't...
- 1030
- 00:54:37,625 --> 00:54:40,417
- I've done something
- in this world that
- 1031
- 00:54:40,500 --> 00:54:42,460
- has made it a little bit
- of a better place, right?
- 1032
- 00:54:42,542 --> 00:54:45,000
- But you've got to be protective
- about patent and all of that.
- 1033
- 00:54:45,083 --> 00:54:47,500
- - We do...
- - But do you have something to worry about,
- 1034
- 00:54:47,583 --> 00:54:49,375
- obviously,
- competitive businesses
- 1035
- 00:54:49,458 --> 00:54:51,709
- always concerned
- about, you know,
- 1036
- 00:54:51,792 --> 00:54:55,542
- - the ideas incorporated into products.
- - Sure.
- 1037
- 00:54:55,625 --> 00:54:57,750
- You have to be on version 10
- 1038
- 00:54:57,834 --> 00:54:59,542
- by the time anybody
- else is on version one.
- 1039
- 00:54:59,625 --> 00:55:01,208
- - Yes.
- - And that's...
- 1040
- 00:55:01,291 --> 00:55:03,208
- that's what our whole
- business is about, so...
- 1041
- 00:55:03,291 --> 00:55:04,583
- So, you're
- paranoid?
- 1042
- 00:55:04,667 --> 00:55:06,750
- - And you have to be.
- - We try to be. Yeah.
- 1043
- 00:55:06,834 --> 00:55:09,291
- We want to be the most
- paranoid people on the planet.
- 1044
- 00:55:09,333 --> 00:55:10,583
- Absolutely. Yeah.
- 1045
- 00:55:14,834 --> 00:55:16,208
- For last two years,
- 1046
- 00:55:16,291 --> 00:55:18,875
- year and a half,
- we come under attack,
- 1047
- 00:55:18,959 --> 00:55:20,709
- you know, from outside, and...
- 1048
- 00:55:20,792 --> 00:55:22,834
- it's usually Quest Diagnostics.
- 1049
- 00:55:22,917 --> 00:55:25,959
- Their entire product strategy
- is lies, built around
- 1050
- 00:55:26,041 --> 00:55:29,667
- getting people sick and then
- living off of their diseases.
- 1051
- 00:55:29,750 --> 00:55:31,792
- And we are trying
- to change that, right?
- 1052
- 00:55:31,875 --> 00:55:33,834
- So, it's really important
- that you all understand
- 1053
- 00:55:33,917 --> 00:55:37,834
- that what we are doing
- here is so disruptive
- 1054
- 00:55:37,917 --> 00:55:40,166
- that we will
- always be attacked.
- 1055
- 00:55:40,208 --> 00:55:42,625
- The paranoia seemed
- to come from the belief that
- 1056
- 00:55:42,709 --> 00:55:45,142
- someone's going to beat us to it,
- or someone's going to steal our ideas,
- 1057
- 00:55:45,166 --> 00:55:46,846
- or we're not going to get
- the whole market.
- 1058
- 00:55:46,875 --> 00:55:49,166
- There's a healthy degree
- of paranoia and secrecy,
- 1059
- 00:55:49,291 --> 00:55:51,291
- but this was well beyond that.
- 1060
- 00:55:52,875 --> 00:55:54,458
- There was security.
- 1061
- 00:55:54,542 --> 00:55:57,291
- You couldn't go walk up
- into her office.
- 1062
- 00:55:57,375 --> 00:55:59,208
- That just doesn't happen.
- 1063
- 00:55:59,291 --> 00:56:02,333
- She had bulletproof glass
- on their exterior windows.
- 1064
- 00:56:02,417 --> 00:56:04,667
- There were bodyguards
- waiting outside,
- 1065
- 00:56:04,750 --> 00:56:06,834
- you know, couple guys
- at the front lobby.
- 1066
- 00:56:06,917 --> 00:56:10,125
- And that increased
- more and more later on.
- 1067
- 00:56:10,208 --> 00:56:13,917
- But, yeah, her and Sunny walk in
- at the same time every morning.
- 1068
- 00:56:14,000 --> 00:56:16,750
- "Eagle One,
- Eagle Two's on their way."
- 1069
- 00:56:16,834 --> 00:56:19,917
- And soon as they start pulling in,
- "Okay, be ready.
- 1070
- 00:56:20,000 --> 00:56:22,208
- Have the doors open."
- 1071
- 00:56:22,291 --> 00:56:24,667
- She was Eagle One,
- Sunny was Eagle Two.
- 1072
- 00:56:33,291 --> 00:56:34,500
- Sunny supposedly
- 1073
- 00:56:34,625 --> 00:56:38,125
- tracked all the key card
- entries and exits,
- 1074
- 00:56:38,208 --> 00:56:40,208
- so you would be
- identified each time
- 1075
- 00:56:40,291 --> 00:56:42,458
- you went into any area.
- 1076
- 00:56:45,083 --> 00:56:46,583
- We would send e-mails,
- 1077
- 00:56:46,667 --> 00:56:49,208
- not CC Sunny or Elizabeth,
- 1078
- 00:56:49,291 --> 00:56:52,125
- and we would get
- a response back from Sunny.
- 1079
- 00:56:52,208 --> 00:56:55,125
- And I remember that was
- a very big turning point for me,
- 1080
- 00:56:55,208 --> 00:56:58,917
- where I was like, "You are being monitored.
- You are being watched."
- 1081
- 00:56:59,000 --> 00:57:01,792
- I found out that I was being keystroked.
- 1082
- 00:57:01,875 --> 00:57:03,792
- That means that
- anything that I typed
- 1083
- 00:57:03,875 --> 00:57:06,500
- was being watched internally.
- 1084
- 00:57:06,583 --> 00:57:07,917
- It seems
- kind of extreme
- 1085
- 00:57:08,000 --> 00:57:09,375
- for a receptionist,
- doesn't it?
- 1086
- 00:57:09,500 --> 00:57:12,917
- - Did that happen to you anywhere else?
- - No.
- 1087
- 00:57:13,000 --> 00:57:16,166
- And, of course, nondisclosure
- agreements had to be signed.
- 1088
- 00:57:16,250 --> 00:57:17,750
- A giant stack of paperwork
- 1089
- 00:57:17,834 --> 00:57:20,542
- saying you can't speak
- poorly about the company,
- 1090
- 00:57:20,625 --> 00:57:23,458
- you're legally liable
- for any detriment caused
- 1091
- 00:57:23,542 --> 00:57:25,742
- to the company. It's like,
- who's writing these contracts
- 1092
- 00:57:25,792 --> 00:57:27,500
- and what are
- they trying to hide?
- 1093
- 00:57:27,583 --> 00:57:29,903
- We weren't supposed to
- tell our families what we did.
- 1094
- 00:57:29,959 --> 00:57:31,709
- We weren't supposed
- to talk about anything
- 1095
- 00:57:31,792 --> 00:57:33,333
- that went on
- inside of Theranos.
- 1096
- 00:57:34,250 --> 00:57:35,417
- Then, after a while,
- 1097
- 00:57:35,500 --> 00:57:37,500
- people became paranoid
- of one another.
- 1098
- 00:57:38,583 --> 00:57:40,667
- We became much more siloed.
- 1099
- 00:57:40,750 --> 00:57:43,875
- Walking down the hallway,
- you'd say hi and the person would look
- 1100
- 00:57:43,959 --> 00:57:46,625
- at the ceiling or the floor or
- anything to avoid eye contact
- 1101
- 00:57:46,709 --> 00:57:48,291
- and not acknowledge
- you back.
- 1102
- 00:57:48,375 --> 00:57:50,559
- Then the next person and the next person,
- and then you'd notice,
- 1103
- 00:57:50,583 --> 00:57:54,333
- there'd be whole groups that just wouldn't...
- you were invisible to them.
- 1104
- 00:57:54,417 --> 00:57:57,208
- It was very hard to communicate
- information sometimes
- 1105
- 00:57:57,291 --> 00:57:59,417
- because there were so
- many blockades and silos
- 1106
- 00:57:59,500 --> 00:58:01,208
- and this emphasis
- on secrecy.
- 1107
- 00:58:01,291 --> 00:58:03,583
- If the people from
- the chemistry team could talk
- 1108
- 00:58:03,667 --> 00:58:06,875
- about what was coming next
- from the engineering team,
- 1109
- 00:58:06,959 --> 00:58:09,519
- they would've said, "Well,
- that's not going to solve the problem,"
- 1110
- 00:58:09,583 --> 00:58:13,000
- but since everyone was
- working on it separately,
- 1111
- 00:58:13,083 --> 00:58:14,917
- they could all keep
- working forever
- 1112
- 00:58:15,000 --> 00:58:17,125
- without actually
- solving anything.
- 1113
- 00:58:18,875 --> 00:58:21,625
- The mantra in Silicon Valley
- is, "Move fast, break things,"
- 1114
- 00:58:21,709 --> 00:58:23,375
- and that is really dangerous
- 1115
- 00:58:23,458 --> 00:58:26,041
- when people's lives
- are in the balance.
- 1116
- 00:58:26,125 --> 00:58:29,125
- Silicon Valley is really good at making
- 1117
- 00:58:29,208 --> 00:58:31,166
- a web-based e-mail client,
- 1118
- 00:58:31,250 --> 00:58:35,083
- or really great at making
- a chat app with emojis on it.
- 1119
- 00:58:35,166 --> 00:58:37,184
- A little mile when you kind of think about
- 1120
- 00:58:37,208 --> 00:58:39,750
- what is all in that
- thing you're holding.
- 1121
- 00:58:39,834 --> 00:58:42,250
- But Silicon Valley is trying to do things
- 1122
- 00:58:42,333 --> 00:58:44,667
- where people's lives
- are on the line.
- 1123
- 00:58:44,750 --> 00:58:46,350
- We're trying to make
- autonomous vehicles.
- 1124
- 00:58:46,417 --> 00:58:48,333
- We're trying to make
- medical devices.
- 1125
- 00:58:48,417 --> 00:58:51,125
- We're trying to do these things
- that if you don't do it right,
- 1126
- 00:58:51,208 --> 00:58:53,333
- quite frankly, people can die.
- 1127
- 00:58:53,417 --> 00:58:57,291
- You need to approach it
- with a different lens.
- 1128
- 00:58:57,375 --> 00:58:59,667
- The problem is that when
- you're developing the future,
- 1129
- 00:58:59,750 --> 00:59:01,959
- you don't know what
- the impact is going to be
- 1130
- 00:59:02,041 --> 00:59:04,291
- because no one's
- seen this before.
- 1131
- 00:59:04,375 --> 00:59:07,834
- And the testing ground is
- often just the general public.
- 1132
- 00:59:20,542 --> 00:59:23,542
- In 2013, Theranos went live,
- 1133
- 00:59:23,625 --> 00:59:25,542
- testing real patients
- in Arizona
- 1134
- 00:59:25,625 --> 00:59:27,792
- as part of a partnership
- with Walgreens.
- 1135
- 00:59:28,542 --> 00:59:30,333
- It was a risky move.
- 1136
- 00:59:30,417 --> 00:59:32,041
- The Edison machines
- had problems,
- 1137
- 00:59:32,125 --> 00:59:35,875
- and they weren't approved by
- regulators for in-store testing.
- 1138
- 00:59:35,959 --> 00:59:37,709
- But Theranos was
- running out of money
- 1139
- 00:59:37,792 --> 00:59:41,333
- and needed the Walgreens deal
- to attract new investors.
- 1140
- 00:59:41,417 --> 00:59:43,959
- So, Elizabeth sold
- Walgreens on a stopgap plan
- 1141
- 00:59:44,041 --> 00:59:47,500
- to launch the Wellness
- Centers without the Edisons.
- 1142
- 00:59:51,250 --> 00:59:53,208
- Instead of testing
- blood on-site,
- 1143
- 00:59:53,291 --> 00:59:55,750
- patients' samples would
- be sent to Palo Alto,
- 1144
- 00:59:55,834 --> 00:59:59,417
- where Theranos had hastily
- constructed a clinical lab.
- 1145
- 00:59:59,500 --> 01:00:02,000
- Many of the technicians
- were inexperienced.
- 1146
- 01:00:02,083 --> 01:00:05,250
- When one lab director quit,
- Theranos replaced him
- 1147
- 01:00:05,333 --> 01:00:07,500
- with a dermatologist.
- 1148
- 01:00:08,500 --> 01:00:10,291
- Due in part
- to the Walgreens launch,
- 1149
- 01:00:10,375 --> 01:00:11,750
- Theranos was able to raise
- 1150
- 01:00:11,834 --> 01:00:14,291
- over $400 million
- from new investors,
- 1151
- 01:00:14,375 --> 01:00:17,458
- like the Walton family,
- Betsy DeVos,
- 1152
- 01:00:17,542 --> 01:00:19,333
- the owner of
- the New England Patriots,
- 1153
- 01:00:19,417 --> 01:00:23,208
- and Rupert Murdoch,
- who put up $125 million.
- 1154
- 01:00:24,625 --> 01:00:26,000
- To investors and patients,
- 1155
- 01:00:26,083 --> 01:00:29,417
- it seemed like the system
- was working as advertised.
- 1156
- 01:00:34,583 --> 01:00:37,208
- The plan was launched in Arizona
- 1157
- 01:00:37,291 --> 01:00:39,291
- as if it's
- a nationwide campaign,
- 1158
- 01:00:39,375 --> 01:00:43,041
- and then take key markets and
- roll it out across the country.
- 1159
- 01:00:44,792 --> 01:00:47,542
- I wasn't an engineer.
- I wasn't a scientist.
- 1160
- 01:00:47,625 --> 01:00:49,166
- I wasn't in R&D.
- 1161
- 01:00:49,250 --> 01:00:52,917
- I was there to create
- a consumer brand.
- 1162
- 01:00:53,000 --> 01:00:57,417
- We came up with three adjectives
- to describe Theranos:
- 1163
- 01:00:57,500 --> 01:01:00,709
- simple, human, and optimistic.
- 1164
- 01:01:01,875 --> 01:01:03,917
- Because there are
- so many barriers
- 1165
- 01:01:04,000 --> 01:01:05,917
- to getting your
- blood drawn,
- 1166
- 01:01:06,000 --> 01:01:07,375
- whether it's
- fear of needles,
- 1167
- 01:01:07,458 --> 01:01:09,500
- or fear of finding
- out the results,
- 1168
- 01:01:09,875 --> 01:01:11,375
- living far away,
- can't afford it.
- 1169
- 01:01:11,458 --> 01:01:13,083
- There's just
- a lot of barriers.
- 1170
- 01:01:13,166 --> 01:01:15,291
- It's like, people
- that have this
- 1171
- 01:01:15,375 --> 01:01:19,166
- fear or this angst or don't like it,
- let's convert them.
- 1172
- 01:01:19,250 --> 01:01:22,542
- So, I hired Errol Morris.
- 1173
- 01:01:23,542 --> 01:01:24,542
- Errol worked with Apple.
- 1174
- 01:01:24,625 --> 01:01:26,875
- Did a lot of great
- work with Apple.
- 1175
- 01:01:26,959 --> 01:01:29,291
- And Elizabeth was
- taken by that.
- 1176
- 01:01:29,375 --> 01:01:31,834
- This could be potentially
- the Apple of health care.
- 1177
- 01:01:31,917 --> 01:01:33,000
- Exactly.
- 1178
- 01:01:33,083 --> 01:01:36,500
- - I'm a fan.
- - Well, likewise.
- 1179
- 01:01:40,917 --> 01:01:42,000
- We did casting.
- 1180
- 01:01:42,083 --> 01:01:44,959
- Real people that have
- all these issues.
- 1181
- 01:01:45,041 --> 01:01:47,500
- We did also reach out
- to existing Theranos customers,
- 1182
- 01:01:47,583 --> 01:01:50,583
- and had several of them come
- and tell their real story
- 1183
- 01:01:50,667 --> 01:01:52,291
- and their experience
- with Theranos.
- 1184
- 01:01:52,375 --> 01:01:53,917
- - Hello!
- - Hi.
- 1185
- 01:01:54,000 --> 01:01:55,959
- Thank you for coming in.
- 1186
- 01:01:57,125 --> 01:01:58,959
- A-mark.
- 1187
- 01:01:59,041 --> 01:02:00,917
- So, as usual,
- I have no idea
- 1188
- 01:02:01,000 --> 01:02:03,750
- what questions to ask
- or where to start.
- 1189
- 01:02:05,709 --> 01:02:07,208
- I think we'll figure it out.
- 1190
- 01:02:08,583 --> 01:02:10,709
- There are so many people
- that don't have insurance
- 1191
- 01:02:10,792 --> 01:02:12,375
- and can't afford insurance.
- 1192
- 01:02:12,458 --> 01:02:13,875
- I was going to doctors,
- 1193
- 01:02:13,959 --> 01:02:15,935
- and I couldn't afford it.
- I was paying out of pocket.
- 1194
- 01:02:15,959 --> 01:02:18,333
- If you're trying to live a life,
- it gets in the way of it.
- 1195
- 01:02:18,417 --> 01:02:19,935
- And if I could receive
- this information,
- 1196
- 01:02:19,959 --> 01:02:22,792
- without having to spend all
- of this money along the way,
- 1197
- 01:02:22,875 --> 01:02:24,166
- that would be amazing.
- 1198
- 01:02:24,250 --> 01:02:26,792
- Eight hundred dollars
- for a series of blood tests?
- 1199
- 01:02:26,875 --> 01:02:28,959
- - It can be pretty stressful.
- - It's expensive.
- 1200
- 01:02:29,041 --> 01:02:30,709
- It's ridiculous.
- 1201
- 01:02:36,083 --> 01:02:38,417
- Once they went live in Arizona...
- 1202
- 01:02:38,500 --> 01:02:40,142
- - Right.
- - ...dealing now with real patients...
- 1203
- 01:02:40,166 --> 01:02:42,000
- - Right.
- - ...as opposed to R&D...
- 1204
- 01:02:42,083 --> 01:02:44,458
- - That's right. Yes.
- - ...you know,
- 1205
- 01:02:44,542 --> 01:02:46,583
- then you begin
- to wonder, like,
- 1206
- 01:02:46,667 --> 01:02:49,083
- - is it...
- - Well, I think here's...
- 1207
- 01:02:49,166 --> 01:02:51,083
- my context for this is,
- 1208
- 01:02:51,208 --> 01:02:52,959
- you know, go back
- to Jobs for a minute,
- 1209
- 01:02:53,041 --> 01:02:54,834
- and all the people
- that said no to him,
- 1210
- 01:02:54,917 --> 01:02:56,583
- and he refused no,
- 1211
- 01:02:56,667 --> 01:02:59,417
- and did it anyway
- and proved everyone wrong.
- 1212
- 01:02:59,500 --> 01:03:03,291
- So, my measure
- of success at that level,
- 1213
- 01:03:03,375 --> 01:03:04,834
- a visionary,
- 1214
- 01:03:04,917 --> 01:03:06,291
- owns his own company,
- 1215
- 01:03:06,375 --> 01:03:08,375
- in creating products
- that change the world,
- 1216
- 01:03:08,458 --> 01:03:10,959
- he did not give up
- or give in ever.
- 1217
- 01:03:11,083 --> 01:03:13,208
- So, that was
- my measure of success.
- 1218
- 01:03:13,291 --> 01:03:17,083
- Now, on patients,
- that's a whole other thing.
- 1219
- 01:03:21,166 --> 01:03:23,083
- In many states,
- patients aren't allowed
- 1220
- 01:03:23,125 --> 01:03:25,458
- to order their own lab tests
- without a prescription.
- 1221
- 01:03:25,542 --> 01:03:29,625
- Doctors are supposed to provide
- guidance and oversight.
- 1222
- 01:03:29,667 --> 01:03:31,834
- But Elizabeth lobbied
- the state of Arizona
- 1223
- 01:03:31,959 --> 01:03:35,458
- to pass a law allowing
- patients to order lab tests
- 1224
- 01:03:35,500 --> 01:03:37,667
- without consulting doctors.
- 1225
- 01:03:38,500 --> 01:03:40,458
- Giving people the right
- 1226
- 01:03:40,500 --> 01:03:43,083
- to obtain a laboratory test
- 1227
- 01:03:43,125 --> 01:03:45,375
- will, by definition,
- 1228
- 01:03:45,458 --> 01:03:49,083
- begin the process of
- enabling them to engage
- 1229
- 01:03:49,166 --> 01:03:51,083
- in their health.
- 1230
- 01:03:51,166 --> 01:03:53,625
- Ms. Holmes, you are magnificent,
- 1231
- 01:03:53,667 --> 01:03:55,625
- and there isn't a question
- 1232
- 01:03:55,750 --> 01:03:58,834
- any of us could ever ask
- that you haven't answered
- 1233
- 01:03:58,959 --> 01:04:01,083
- 20 or 30 times before.
- 1234
- 01:04:02,291 --> 01:04:05,875
- This law would allow you
- to order your own blood work,
- 1235
- 01:04:05,959 --> 01:04:07,291
- and you get the results.
- 1236
- 01:04:07,375 --> 01:04:10,500
- This is what
- Theranos puts out.
- 1237
- 01:04:10,583 --> 01:04:11,500
- It's a menu.
- 1238
- 01:04:11,583 --> 01:04:13,750
- You kind of order àla carte,
- 1239
- 01:04:13,834 --> 01:04:16,000
- but there are some
- cautions raised
- 1240
- 01:04:16,083 --> 01:04:17,959
- from the medical community.
- 1241
- 01:04:19,417 --> 01:04:21,184
- You can't just look at a lab.
- 1242
- 01:04:21,208 --> 01:04:24,083
- You have to look at the whole
- patient, the whole person.
- 1243
- 01:04:24,166 --> 01:04:26,583
- We can't write a
- prescription for somebody
- 1244
- 01:04:26,667 --> 01:04:30,125
- that we haven't done a
- physical exam or have seen,
- 1245
- 01:04:30,208 --> 01:04:31,917
- so it kind of
- was like,
- 1246
- 01:04:32,000 --> 01:04:34,542
- how are we going
- to deal with this?
- 1247
- 01:04:34,625 --> 01:04:36,625
- Low cost was very interesting
- to the patients,
- 1248
- 01:04:36,709 --> 01:04:40,250
- but then also being able
- to order their own labs,
- 1249
- 01:04:40,333 --> 01:04:42,083
- and they really liked that.
- 1250
- 01:04:43,291 --> 01:04:46,834
- What made me concerned was,
- as a physician,
- 1251
- 01:04:46,917 --> 01:04:48,717
- you can call the lab
- and ask simple questions,
- 1252
- 01:04:48,792 --> 01:04:52,083
- and these are questions
- that we would ask any lab.
- 1253
- 01:04:52,166 --> 01:04:55,083
- But Theranos,
- they weren't very transparent.
- 1254
- 01:04:55,875 --> 01:04:57,250
- We tried to tell patients that,
- 1255
- 01:04:57,333 --> 01:05:00,500
- "Listen, we're not getting
- a lot of information
- 1256
- 01:05:00,583 --> 01:05:02,166
- "about how they
- do their testing,
- 1257
- 01:05:02,250 --> 01:05:04,959
- and so we're kind
- of unsure of them."
- 1258
- 01:05:05,834 --> 01:05:10,667
- But then, Theranos started giving
- out vouchers or gift cards
- 1259
- 01:05:10,750 --> 01:05:13,792
- to get labs,
- free labs done there.
- 1260
- 01:05:13,875 --> 01:05:17,250
- And so it just kind of...
- exploded.
- 1261
- 01:05:17,333 --> 01:05:19,000
- Mom, you really are
- an important part
- 1262
- 01:05:19,083 --> 01:05:21,083
- of our family because...
- 1263
- 01:05:22,959 --> 01:05:25,542
- we really love
- you so much.
- 1264
- 01:05:25,625 --> 01:05:27,417
- Your health is
- really important to us.
- 1265
- 01:05:27,500 --> 01:05:30,500
- The kids adore you.
- 1266
- 01:05:30,583 --> 01:05:32,375
- Estábien, chiquita.
- 1267
- 01:05:32,458 --> 01:05:33,792
- Theranos gift cards.
- 1268
- 01:05:33,875 --> 01:05:35,250
- Because nothing is
- more important
- 1269
- 01:05:35,333 --> 01:05:36,875
- than the health
- of those you love.
- 1270
- 01:05:38,417 --> 01:05:39,768
- Marker.
- 1271
- 01:06:00,208 --> 01:06:03,375
- Because of my
- extensive background in phlebotomy,
- 1272
- 01:06:03,458 --> 01:06:05,792
- they offered me
- the trainer job.
- 1273
- 01:06:05,875 --> 01:06:08,709
- Basically, I was training
- the Walgreens technicians
- 1274
- 01:06:08,792 --> 01:06:12,375
- and pharmacist to do the
- fingerstick process because...
- 1275
- 01:06:13,583 --> 01:06:15,959
- no one at
- Walgreens had ever
- 1276
- 01:06:16,041 --> 01:06:18,750
- handled blood
- or bodily fluids.
- 1277
- 01:06:18,834 --> 01:06:21,125
- So, talking about
- 1278
- 01:06:21,208 --> 01:06:23,792
- what do you do in case
- of an exposure and...
- 1279
- 01:06:23,875 --> 01:06:26,083
- how do you handle
- adolescents,
- 1280
- 01:06:26,166 --> 01:06:28,917
- um, you know, just everything.
- 1281
- 01:06:29,000 --> 01:06:30,709
- What do you do
- if someone faints?
- 1282
- 01:06:35,792 --> 01:06:37,792
- Our goal is to be within five miles
- 1283
- 01:06:37,875 --> 01:06:41,792
- of every person's home through
- the Walgreens nationally.
- 1284
- 01:06:42,625 --> 01:06:46,625
- Our success will be in being
- able to make it possible
- 1285
- 01:06:46,709 --> 01:06:50,125
- for no one to ever have
- to go through the process
- 1286
- 01:06:50,208 --> 01:06:53,500
- of being stabbed by a big
- needle to get blood anymore,
- 1287
- 01:06:53,583 --> 01:06:56,583
- and be able to begin
- to get access to this lab...
- 1288
- 01:06:56,667 --> 01:06:58,625
- As I was doing my research,
- 1289
- 01:06:58,709 --> 01:07:00,625
- they had about 90 tests,
- 1290
- 01:07:00,709 --> 01:07:03,166
- and by the time
- I was ready to publish,
- 1291
- 01:07:03,250 --> 01:07:05,417
- they had over 200.
- 1292
- 01:07:05,500 --> 01:07:06,792
- I wondered at the time
- 1293
- 01:07:06,875 --> 01:07:09,667
- how exactly was
- she miniaturizing
- 1294
- 01:07:09,750 --> 01:07:11,000
- 200 different tests,
- 1295
- 01:07:11,083 --> 01:07:13,208
- and how exactly
- were you going to get
- 1296
- 01:07:13,291 --> 01:07:16,208
- all of this done
- in the small analyzers?
- 1297
- 01:07:17,667 --> 01:07:20,458
- And she was charging
- so much less than the others,
- 1298
- 01:07:20,542 --> 01:07:24,375
- so all of that
- strained credulity.
- 1299
- 01:07:25,375 --> 01:07:28,500
- I just didn't think that this
- 1300
- 01:07:28,583 --> 01:07:30,667
- very sincere,
- 1301
- 01:07:30,750 --> 01:07:33,959
- earnest, idealistic,
- young woman
- 1302
- 01:07:34,041 --> 01:07:37,083
- was deceiving not just me,
- 1303
- 01:07:37,166 --> 01:07:41,250
- but Walgreens Corporation
- and investors
- 1304
- 01:07:41,333 --> 01:07:44,625
- to the tune of more than
- $400 million at that point.
- 1305
- 01:07:48,583 --> 01:07:50,500
- To be able to give people
- 1306
- 01:07:50,583 --> 01:07:52,500
- the tools to change their life
- 1307
- 01:07:52,583 --> 01:07:55,417
- is an incredible blessing.
- It's a privilege.
- 1308
- 01:07:56,667 --> 01:07:58,166
- Every single day,
- 1309
- 01:07:58,250 --> 01:08:01,583
- I'm just so grateful for the
- way in which this is unfolding.
- 1310
- 01:08:02,542 --> 01:08:04,208
- It's a gift from God.
- 1311
- 01:08:16,750 --> 01:08:18,834
- We have to understand that this is all about
- 1312
- 01:08:18,917 --> 01:08:22,125
- wanting the world
- to be a certain way,
- 1313
- 01:08:22,208 --> 01:08:24,792
- and basically being able
- to rationalize our actions
- 1314
- 01:08:24,875 --> 01:08:27,291
- to try and make it true.
- 1315
- 01:08:27,375 --> 01:08:29,542
- You have to want
- a certain thing,
- 1316
- 01:08:29,625 --> 01:08:32,041
- and then you should be able
- to kind of bend reality,
- 1317
- 01:08:32,125 --> 01:08:35,291
- or rationalize things to
- allow you to do that.
- 1318
- 01:08:35,375 --> 01:08:37,208
- But the other
- thing is that
- 1319
- 01:08:37,291 --> 01:08:40,375
- what about
- reasons for good?
- 1320
- 01:08:40,458 --> 01:08:43,166
- And I'll tell you
- about a study we did.
- 1321
- 01:08:43,250 --> 01:08:45,583
- And the experiment
- works like this.
- 1322
- 01:08:45,667 --> 01:08:47,917
- We give people a die,
- a six-sided die,
- 1323
- 01:08:48,000 --> 01:08:50,041
- and we say, "Why don't
- you throw the die?"
- 1324
- 01:08:50,125 --> 01:08:52,125
- And we'll pay you
- whatever it comes up.
- 1325
- 01:08:52,208 --> 01:08:53,559
- Comes in six,
- you'll get six dollars
- 1326
- 01:08:53,583 --> 01:08:56,083
- five, five dollars, four,
- and so on until one.
- 1327
- 01:08:56,166 --> 01:08:59,834
- But you can get paid based on
- the top side or the bottom side.
- 1328
- 01:08:59,917 --> 01:09:02,750
- Top or bottom, you decide,
- but don't tell us.
- 1329
- 01:09:02,834 --> 01:09:05,417
- So, I give you the die,
- I say, "Don't tell me."
- 1330
- 01:09:05,500 --> 01:09:08,291
- Think top or bottom.
- You have it? You know which one?
- 1331
- 01:09:08,375 --> 01:09:10,583
- Now, toss the die.
- 1332
- 01:09:12,417 --> 01:09:14,250
- And let's say the die
- comes five on the bottom
- 1333
- 01:09:14,333 --> 01:09:17,083
- and two on the top.
- And now I say,
- 1334
- 01:09:17,166 --> 01:09:19,166
- "Alex, what did you pick?"
- 1335
- 01:09:19,250 --> 01:09:21,750
- Now, if you picked bottom,
- you say bottom, you get five dollars.
- 1336
- 01:09:21,834 --> 01:09:22,917
- You pick top,
- 1337
- 01:09:23,000 --> 01:09:25,208
- what do you say?
- You say the truth? Top?
- 1338
- 01:09:25,291 --> 01:09:29,750
- Or do you change your mind?
- You say bottom and get five dollars.
- 1339
- 01:09:29,834 --> 01:09:32,125
- In our experiment,
- people do this 20 times.
- 1340
- 01:09:32,208 --> 01:09:33,768
- And every time they
- think top or bottom,
- 1341
- 01:09:33,792 --> 01:09:37,375
- commit it to memory,
- toss the die, and they write,
- 1342
- 01:09:37,458 --> 01:09:40,250
- "Five and two.
- I chose five," and so on.
- 1343
- 01:09:41,041 --> 01:09:42,559
- And when you do it
- 20 times, you find that
- 1344
- 01:09:42,583 --> 01:09:44,333
- people are extra lucky.
- 1345
- 01:09:44,417 --> 01:09:47,041
- Right? And luck has
- this really nice feature
- 1346
- 01:09:47,125 --> 01:09:49,750
- of focusing on the six-one
- die tosses, right?
- 1347
- 01:09:49,834 --> 01:09:51,750
- They're extra lucky on
- the six-one die tosses,
- 1348
- 01:09:51,834 --> 01:09:53,709
- not so much on
- the three-four.
- 1349
- 01:09:53,792 --> 01:09:54,959
- That's the basic experiment.
- 1350
- 01:09:55,041 --> 01:09:57,125
- Now, here's the thing
- I want to tell you.
- 1351
- 01:09:57,208 --> 01:09:58,834
- We do the same experiment,
- 1352
- 01:09:58,917 --> 01:10:02,250
- but we connect people
- to a lie detector.
- 1353
- 01:10:02,333 --> 01:10:05,875
- And we ask the question of whether
- the lie detector can detect it,
- 1354
- 01:10:05,959 --> 01:10:08,959
- and the answer is yes,
- the lie detector can detect lies,
- 1355
- 01:10:09,041 --> 01:10:11,583
- not all the time,
- but it can detect it.
- 1356
- 01:10:11,667 --> 01:10:13,458
- In another version
- of the experiment,
- 1357
- 01:10:13,542 --> 01:10:15,291
- we do the same thing,
- 1358
- 01:10:15,375 --> 01:10:17,333
- but people pick a charity.
- 1359
- 01:10:17,417 --> 01:10:19,458
- And all the money that
- they're going to make today
- 1360
- 01:10:19,542 --> 01:10:22,166
- goes to that charity.
- Right? For a good cause.
- 1361
- 01:10:22,250 --> 01:10:24,917
- What do you think happened,
- people cheat more or less?
- 1362
- 01:10:25,000 --> 01:10:27,000
- People cheat more.
- 1363
- 01:10:27,083 --> 01:10:29,583
- And the lie detector
- stops working.
- 1364
- 01:10:30,750 --> 01:10:33,333
- Why? Because what does
- the lie detector detect?
- 1365
- 01:10:33,417 --> 01:10:35,875
- The lie detector
- detects a tension.
- 1366
- 01:10:35,959 --> 01:10:38,000
- I want more money,
- but I think it's wrong.
- 1367
- 01:10:38,083 --> 01:10:39,792
- I want more money,
- but I think it's wrong,
- 1368
- 01:10:39,875 --> 01:10:41,625
- but if it's not wrong,
- 1369
- 01:10:41,709 --> 01:10:43,458
- why would you worry?
- 1370
- 01:10:43,542 --> 01:10:47,000
- If it's for a good cause, you can still
- think of yourself as a good person,
- 1371
- 01:10:47,083 --> 01:10:51,500
- and that's how things start,
- and then it becomes a slippery slope.
- 1372
- 01:11:09,250 --> 01:11:10,935
- I was at the Wall Street Journal
- 1373
- 01:11:10,959 --> 01:11:13,000
- on the fifth floor
- of the Journal newsroom
- 1374
- 01:11:13,083 --> 01:11:14,792
- in midtown Manhattan.
- 1375
- 01:11:14,875 --> 01:11:16,917
- I had couple weeks
- prior finished
- 1376
- 01:11:17,000 --> 01:11:19,500
- a long series
- on Medicare fraud.
- 1377
- 01:11:19,583 --> 01:11:20,667
- So, I was looking for
- 1378
- 01:11:20,750 --> 01:11:23,417
- something new to
- sink my teeth into,
- 1379
- 01:11:23,500 --> 01:11:25,333
- and one
- afternoon,
- 1380
- 01:11:25,417 --> 01:11:27,583
- I'm at my desk,
- my phone rings, I pick up,
- 1381
- 01:11:27,667 --> 01:11:29,750
- and it's this source of mine.
- 1382
- 01:11:29,834 --> 01:11:32,125
- He asked me whether I'd read
- this New Yorker profile
- 1383
- 01:11:32,208 --> 01:11:33,959
- of Elizabeth Holmes
- that had been published
- 1384
- 01:11:34,041 --> 01:11:37,375
- a couple weeks prior
- in December of 2014.
- 1385
- 01:11:37,458 --> 01:11:39,250
- As it turns out, I had.
- 1386
- 01:11:39,333 --> 01:11:41,709
- And there was a quote
- from Elizabeth Holmes
- 1387
- 01:11:41,792 --> 01:11:45,417
- that Ken Auletta described
- as "comically vague."
- 1388
- 01:11:45,500 --> 01:11:47,041
- It sounded like the words
- 1389
- 01:11:47,125 --> 01:11:48,625
- of a high school
- chemistry student,
- 1390
- 01:11:48,709 --> 01:11:51,667
- as opposed to a sophisticated
- laboratory scientist
- 1391
- 01:11:51,750 --> 01:11:54,917
- who'd really
- invented new science.
- 1392
- 01:11:55,000 --> 01:11:58,083
- But I might not have
- done anything about it
- 1393
- 01:11:58,166 --> 01:11:59,750
- if it weren't for the fact that
- 1394
- 01:11:59,834 --> 01:12:03,750
- my source was now coming
- to me with this tip.
- 1395
- 01:12:03,834 --> 01:12:06,917
- He said there's
- a laboratory director
- 1396
- 01:12:07,000 --> 01:12:09,792
- who had just left Theranos
- on pretty bad terms
- 1397
- 01:12:09,875 --> 01:12:12,750
- because he had become
- increasingly concerned
- 1398
- 01:12:12,834 --> 01:12:16,125
- about the practices that
- he had witnessed there.
- 1399
- 01:12:16,667 --> 01:12:18,709
- My ears definitely
- pricked up at that,
- 1400
- 01:12:18,792 --> 01:12:20,834
- and so I made contact.
- 1401
- 01:12:20,917 --> 01:12:23,208
- When I got him on the phone,
- 1402
- 01:12:23,291 --> 01:12:25,375
- after trying him a few times,
- he was terrified.
- 1403
- 01:12:25,458 --> 01:12:28,625
- He was being hounded by the law firm
- 1404
- 01:12:28,709 --> 01:12:31,458
- of the famous
- lawyer David Boies.
- 1405
- 01:12:31,542 --> 01:12:34,959
- One of Theranos's strokes of
- genius was to hire David Boies
- 1406
- 01:12:35,041 --> 01:12:38,083
- and also give him
- stock in the company.
- 1407
- 01:12:38,166 --> 01:12:40,959
- I mean, this is a lion
- of the legal industry,
- 1408
- 01:12:41,041 --> 01:12:43,542
- arguably the most well-known
- lawyer in America,
- 1409
- 01:12:43,625 --> 01:12:46,959
- who had represented Al Gore in in
- the presidential recount in 2000.
- 1410
- 01:12:47,041 --> 01:12:50,458
- Before that, won a case on
- behalf of the Justice Department
- 1411
- 01:12:50,542 --> 01:12:52,083
- against Microsoft,
- 1412
- 01:12:52,166 --> 01:12:55,792
- and had shred Bill Gates
- during 20 hours of deposition.
- 1413
- 01:12:55,875 --> 01:12:58,625
- And he would later become
- famous as the legal muscle
- 1414
- 01:12:58,709 --> 01:13:02,834
- for Harvey Weinstein and his
- attempt to silence accusers.
- 1415
- 01:13:02,917 --> 01:13:06,625
- This was someone who struck
- fear in many people.
- 1416
- 01:13:06,709 --> 01:13:09,834
- The lab director said
- that Boies was pressuring him
- 1417
- 01:13:09,917 --> 01:13:12,834
- and threatening him
- with litigation.
- 1418
- 01:13:12,917 --> 01:13:15,125
- So, I had to agree...
- 1419
- 01:13:15,208 --> 01:13:17,375
- to keep his identity
- confidential.
- 1420
- 01:13:18,875 --> 01:13:23,125
- He told me that the Edison
- could only do a few tests,
- 1421
- 01:13:23,208 --> 01:13:25,875
- and that all the other
- tests on Theranos's menu,
- 1422
- 01:13:25,959 --> 01:13:29,542
- and at that point,
- we're talking about 250 blood tests,
- 1423
- 01:13:29,625 --> 01:13:31,667
- were done on
- commercially available
- 1424
- 01:13:31,750 --> 01:13:34,041
- laboratory machines
- that had been purchased
- 1425
- 01:13:34,125 --> 01:13:37,750
- from companies like
- Siemens and DiaSorin.
- 1426
- 01:13:37,834 --> 01:13:39,333
- And then they were also lying
- 1427
- 01:13:39,417 --> 01:13:43,500
- about the reliability and the
- accuracy of the blood tests.
- 1428
- 01:13:53,000 --> 01:13:54,458
- So, I went to Arizona
- 1429
- 01:13:54,542 --> 01:13:56,041
- to get myself tested.
- 1430
- 01:13:56,125 --> 01:13:57,542
- And so,
- one morning, I went
- 1431
- 01:13:57,625 --> 01:14:00,458
- to the Walgreens that
- was closest to my hotel.
- 1432
- 01:14:00,542 --> 01:14:02,041
- I sat down
- in one of these
- 1433
- 01:14:02,125 --> 01:14:04,208
- little Wellness Centers,
- and the phlebotomist,
- 1434
- 01:14:04,291 --> 01:14:06,041
- I heard her talking
- on the phone,
- 1435
- 01:14:06,125 --> 01:14:08,709
- and typing on a computer
- for a few minutes,
- 1436
- 01:14:08,792 --> 01:14:11,917
- and then she turned around
- and she came at me
- 1437
- 01:14:12,000 --> 01:14:14,208
- with a tourniquet and a syringe.
- 1438
- 01:14:17,208 --> 01:14:19,542
- And I said,
- "Why not a fingerstick?
- 1439
- 01:14:19,625 --> 01:14:21,000
- "I thought
- this was all about,
- 1440
- 01:14:21,083 --> 01:14:23,458
- you know,
- a fingerstick blood test."
- 1441
- 01:14:23,542 --> 01:14:25,542
- She said,
- "No, your order actually
- 1442
- 01:14:25,625 --> 01:14:27,875
- includes tests that
- require venous draw."
- 1443
- 01:14:30,000 --> 01:14:33,375
- The truth is that,
- before my story came out,
- 1444
- 01:14:33,458 --> 01:14:35,542
- there had already been
- instances of people
- 1445
- 01:14:35,625 --> 01:14:37,250
- going in to get
- their blood checked,
- 1446
- 01:14:37,333 --> 01:14:39,625
- and they would need
- to do a venipuncture
- 1447
- 01:14:39,709 --> 01:14:43,208
- instead of a fingerstick
- of capillary blood.
- 1448
- 01:14:43,291 --> 01:14:45,917
- And so, I asked about
- that a number of times,
- 1449
- 01:14:46,000 --> 01:14:50,375
- and the answers were
- incredibly opaque.
- 1450
- 01:14:50,458 --> 01:14:51,935
- So, my question is
- 1451
- 01:14:51,959 --> 01:14:54,083
- what percentage
- of your tests are
- 1452
- 01:14:54,166 --> 01:14:56,250
- needle rather
- than finger prick?
- 1453
- 01:14:56,333 --> 01:14:59,208
- I-I don't have a really good number for you
- 1454
- 01:14:59,291 --> 01:15:01,125
- because it's changing.
- 1455
- 01:15:01,208 --> 01:15:03,208
- And we're really confident
- being able to say
- 1456
- 01:15:03,291 --> 01:15:05,959
- that we're very close
- to 99% being on capillary,
- 1457
- 01:15:06,041 --> 01:15:08,834
- but when you try
- to pinpoint a number...
- 1458
- 01:15:08,917 --> 01:15:10,834
- We talking about in the next
- 1459
- 01:15:10,917 --> 01:15:13,834
- - five years? One year? Two months?
- - No.
- 1460
- 01:15:13,917 --> 01:15:16,291
- Much less than a year,
- 1461
- 01:15:16,375 --> 01:15:17,750
- without question.
- 1462
- 01:15:18,709 --> 01:15:20,500
- At the time,
- you didn't think that
- 1463
- 01:15:20,583 --> 01:15:23,458
- that was necessarily
- evidence of...
- 1464
- 01:15:23,542 --> 01:15:25,834
- Absolutely not.
- I actually believed her.
- 1465
- 01:15:25,917 --> 01:15:29,291
- Of course, I remember
- her saying it to me.
- 1466
- 01:15:29,375 --> 01:15:32,083
- And... that's a lie.
- 1467
- 01:15:33,000 --> 01:15:34,041
- Period.
- 1468
- 01:15:38,583 --> 01:15:40,041
- So, after a year or so,
- 1469
- 01:15:40,125 --> 01:15:43,959
- we started to see the
- fingerstick collection dwindle,
- 1470
- 01:15:44,041 --> 01:15:47,125
- and more venipuncture increase.
- 1471
- 01:15:47,208 --> 01:15:49,792
- What did they tell you
- about why they were switching
- 1472
- 01:15:49,875 --> 01:15:53,083
- to part fingerstick
- and part venipuncture?
- 1473
- 01:15:53,166 --> 01:15:56,333
- They just... They didn't tell us.
- It just happened.
- 1474
- 01:15:56,417 --> 01:16:01,083
- We were told we would need to
- say this blanketed statement:
- 1475
- 01:16:01,166 --> 01:16:03,583
- "Due to the test that
- your physician ordered,
- 1476
- 01:16:03,667 --> 01:16:06,375
- "we have to perform
- venipuncture
- 1477
- 01:16:06,458 --> 01:16:08,291
- "to make sure
- that we had enough
- 1478
- 01:16:08,375 --> 01:16:12,000
- "sample to perform the testing.
- 1479
- 01:16:12,083 --> 01:16:14,208
- Would you like to proceed?"
- 1480
- 01:16:14,291 --> 01:16:16,625
- - That's it.
- - That must've surprised you.
- 1481
- 01:16:16,709 --> 01:16:19,208
- Yeah, it surprised
- a lot of the technicians.
- 1482
- 01:16:19,291 --> 01:16:21,166
- It surprised
- a lot of the patients,
- 1483
- 01:16:21,250 --> 01:16:22,890
- or the customers
- that were coming in, too.
- 1484
- 01:16:22,917 --> 01:16:27,166
- Some people, uh,
- expressed profanity,
- 1485
- 01:16:27,250 --> 01:16:31,333
- stormed out,
- demanded their money back.
- 1486
- 01:16:31,417 --> 01:16:35,333
- Then, during that whole
- transition to venipuncture,
- 1487
- 01:16:35,417 --> 01:16:41,250
- we had this big hiring boom where
- I had to train 50 more employees
- 1488
- 01:16:41,333 --> 01:16:45,959
- because now we opened up
- our next 10 Wellness Centers.
- 1489
- 01:16:48,792 --> 01:16:50,333
- With the Walgreens roll out,
- 1490
- 01:16:50,417 --> 01:16:52,875
- the problems at
- Theranos were magnified.
- 1491
- 01:16:52,959 --> 01:16:55,500
- Instead of shutting down
- until the Edisons could perform
- 1492
- 01:16:55,583 --> 01:16:57,583
- all the tests on
- the Theranos menu,
- 1493
- 01:16:57,667 --> 01:17:01,291
- Elizabeth and her team
- invented a workaround designed
- 1494
- 01:17:01,375 --> 01:17:04,000
- to create the illusion
- of a new technology.
- 1495
- 01:17:04,083 --> 01:17:08,291
- For most tests, they were forced to
- use venous blood, drawn with needles,
- 1496
- 01:17:08,375 --> 01:17:11,625
- and to buy the same machines
- used by every other lab.
- 1497
- 01:17:11,709 --> 01:17:14,250
- But to keep Elizabeth's
- fingerstick dream alive,
- 1498
- 01:17:14,333 --> 01:17:16,625
- Theranos modified
- some of those machines,
- 1499
- 01:17:16,709 --> 01:17:19,875
- so they would work with
- diluted capillary samples.
- 1500
- 01:17:19,959 --> 01:17:21,500
- And for a handful
- of patient tests,
- 1501
- 01:17:21,583 --> 01:17:24,000
- the company used
- the old Edison prototype
- 1502
- 01:17:24,083 --> 01:17:26,458
- Elizabeth had
- pitched to Walgreens.
- 1503
- 01:17:26,542 --> 01:17:29,375
- What we've worked to do
- is eliminate the error
- 1504
- 01:17:29,458 --> 01:17:31,417
- and variability
- that's associated
- 1505
- 01:17:31,500 --> 01:17:34,333
- with human processing
- of samples.
- 1506
- 01:17:34,417 --> 01:17:37,625
- When Elizabeth says the
- whole process was automated
- 1507
- 01:17:37,709 --> 01:17:39,917
- from start to finish,
- it was...
- 1508
- 01:17:40,000 --> 01:17:42,709
- it was, uh, yeah,
- that was a stretch.
- 1509
- 01:17:42,792 --> 01:17:45,750
- It would sometimes take six hours
- 1510
- 01:17:45,834 --> 01:17:47,667
- just to set up the system
- 1511
- 01:17:47,750 --> 01:17:50,166
- before we could even
- run the patient samples.
- 1512
- 01:17:50,250 --> 01:17:52,875
- I was filling up containers,
- 1513
- 01:17:52,959 --> 01:17:56,458
- doing so many manual
- things with hands.
- 1514
- 01:17:56,542 --> 01:17:58,792
- And the scary thing about
- the nanotainers was they could
- 1515
- 01:17:58,875 --> 01:18:01,000
- hop off your tray and they
- would be on the ground,
- 1516
- 01:18:01,083 --> 01:18:03,875
- and you might not be
- able to spot them.
- 1517
- 01:18:05,709 --> 01:18:07,542
- They had to dilute the nanotainers
- 1518
- 01:18:07,625 --> 01:18:09,458
- to run it on
- the Siemens machines,
- 1519
- 01:18:09,542 --> 01:18:11,959
- which was not how they
- were supposed to be used,
- 1520
- 01:18:12,041 --> 01:18:14,208
- and so people who worked
- in the clinical lab
- 1521
- 01:18:14,291 --> 01:18:16,458
- were nervous about that
- because they were violating
- 1522
- 01:18:16,542 --> 01:18:19,208
- the operating standards
- for those devices,
- 1523
- 01:18:19,291 --> 01:18:21,125
- which, you know,
- are rigorous standards
- 1524
- 01:18:21,208 --> 01:18:23,125
- since they're
- being used to test
- 1525
- 01:18:23,208 --> 01:18:24,875
- people for diseases.
- 1526
- 01:18:26,166 --> 01:18:28,333
- We were fudging results,
- 1527
- 01:18:28,417 --> 01:18:31,959
- rerunning quality control
- tests until they passed.
- 1528
- 01:18:32,041 --> 01:18:33,583
- The solution at some point was,
- 1529
- 01:18:33,667 --> 01:18:35,347
- "If you just throw out
- that one data point,
- 1530
- 01:18:35,375 --> 01:18:36,643
- then the other three
- look beautiful."
- 1531
- 01:18:36,667 --> 01:18:39,417
- And that's not
- the way you approach
- 1532
- 01:18:39,500 --> 01:18:41,709
- science that's going to be
- impacting people's lives.
- 1533
- 01:18:41,792 --> 01:18:44,125
- There were people who had to run tests
- 1534
- 01:18:44,208 --> 01:18:46,208
- on devices that they knew
- weren't working,
- 1535
- 01:18:46,291 --> 01:18:49,667
- and give those
- results to patients.
- 1536
- 01:18:49,750 --> 01:18:52,709
- People were very upset,
- you know, crying.
- 1537
- 01:18:52,792 --> 01:18:54,333
- Some members of
- the CLIA lab would even
- 1538
- 01:18:54,417 --> 01:18:56,792
- have to call patients and
- tell them that they had to go
- 1539
- 01:18:56,875 --> 01:18:59,583
- to the emergency room 'cause the
- lab test was, you know, so far off.
- 1540
- 01:18:59,667 --> 01:19:01,709
- What really hit home for me is
- 1541
- 01:19:01,792 --> 01:19:04,542
- we were starting to do
- more infectious disease.
- 1542
- 01:19:04,625 --> 01:19:07,083
- Hepatitis C, prostate cancer,
- 1543
- 01:19:07,166 --> 01:19:09,000
- and even syphilis.
- 1544
- 01:19:09,083 --> 01:19:11,750
- I was running precision testing for syphilis,
- 1545
- 01:19:11,834 --> 01:19:15,458
- and there was a lot of
- variability in the test,
- 1546
- 01:19:16,208 --> 01:19:19,250
- but Theranos said,
- "This is safe to use
- 1547
- 01:19:19,333 --> 01:19:22,417
- on real
- patient samples."
- 1548
- 01:19:22,500 --> 01:19:24,375
- And I was kind of blown away.
- 1549
- 01:19:24,458 --> 01:19:26,083
- If a hundred people
- who had syphilis
- 1550
- 01:19:26,166 --> 01:19:28,792
- came and got tested
- on the Theranos devices,
- 1551
- 01:19:28,875 --> 01:19:31,041
- we would only tell 65 of
- them that they had syphilis,
- 1552
- 01:19:31,125 --> 01:19:32,709
- and we would tell the other 35,
- 1553
- 01:19:32,792 --> 01:19:35,041
- "You're healthy. No need
- for medical intervention."
- 1554
- 01:19:35,125 --> 01:19:39,041
- So, if people are
- 1555
- 01:19:39,125 --> 01:19:42,542
- testing themselves for
- syphilis using Theranos,
- 1556
- 01:19:42,625 --> 01:19:44,726
- there's going to be a lot more
- syphilis in this world.
- 1557
- 01:19:49,417 --> 01:19:51,083
- Their downfall was when they started
- 1558
- 01:19:51,166 --> 01:19:54,542
- giving us results that
- were not matching up
- 1559
- 01:19:54,625 --> 01:19:56,959
- with other labs.
- 1560
- 01:19:57,041 --> 01:19:59,834
- We started seeing that,
- at first, with TSHs,
- 1561
- 01:19:59,917 --> 01:20:02,834
- which is the thyroid
- stimulating hormone.
- 1562
- 01:20:02,917 --> 01:20:05,250
- Patients that had been
- coming to us for years
- 1563
- 01:20:05,333 --> 01:20:06,583
- to get their TSH done,
- 1564
- 01:20:06,667 --> 01:20:08,667
- they had gone to
- Theranos and their labs
- 1565
- 01:20:08,750 --> 01:20:11,458
- were changing
- really drastically.
- 1566
- 01:20:11,542 --> 01:20:14,333
- So, we started sending
- them to LabCorp,
- 1567
- 01:20:14,417 --> 01:20:16,057
- just to verify, and
- that's when we started
- 1568
- 01:20:16,125 --> 01:20:19,083
- seeing some pretty
- abnormal results.
- 1569
- 01:20:19,166 --> 01:20:20,375
- I understand
- how a patient
- 1570
- 01:20:20,458 --> 01:20:22,333
- would wanna order
- their own labs,
- 1571
- 01:20:22,417 --> 01:20:25,375
- but then they get it and they
- don't know what to do with it,
- 1572
- 01:20:25,458 --> 01:20:27,125
- or they go
- on Google
- 1573
- 01:20:27,208 --> 01:20:29,709
- and google everything
- under the sun,
- 1574
- 01:20:29,792 --> 01:20:32,083
- and see that
- they have cancer, so...
- 1575
- 01:20:32,166 --> 01:20:34,375
- - When they don't.
- - When they don't!
- 1576
- 01:20:34,458 --> 01:20:37,834
- When you read about how
- many tests were actually wrong...
- 1577
- 01:20:37,917 --> 01:20:39,834
- - Mm-hmm.
- - ...did that concern you?
- 1578
- 01:20:39,917 --> 01:20:42,000
- It did because I had
- some of those tests
- 1579
- 01:20:42,083 --> 01:20:44,625
- performed on me
- and my children!
- 1580
- 01:20:44,709 --> 01:20:46,375
- I did!
- 1581
- 01:20:46,458 --> 01:20:50,125
- So, I immediately
- went back to...
- 1582
- 01:20:50,208 --> 01:20:52,542
- the other
- big lab companies,
- 1583
- 01:20:52,625 --> 01:20:55,250
- and got my test done,
- the same test done,
- 1584
- 01:20:55,333 --> 01:20:58,208
- and I compared them,
- and there was a big difference.
- 1585
- 01:20:58,458 --> 01:21:01,125
- So, yeah, it was scary.
- 1586
- 01:21:01,208 --> 01:21:02,458
- It was very scary.
- 1587
- 01:21:05,291 --> 01:21:08,291
- There are so many people
- who reach out to us and thank us.
- 1588
- 01:21:08,375 --> 01:21:11,417
- This one guy, he said,
- "Thank God for Theranos."
- 1589
- 01:21:11,500 --> 01:21:13,434
- I mean, how many times you
- say that about companies?
- 1590
- 01:21:13,458 --> 01:21:16,792
- You buy a product, and do you
- ever say, "Thank God for Uber?"
- 1591
- 01:21:16,875 --> 01:21:18,500
- Well, maybe sometimes, but...
- 1592
- 01:21:18,583 --> 01:21:20,208
- But you will say
- 1593
- 01:21:20,333 --> 01:21:22,333
- thank God for
- Theranos every day,
- 1594
- 01:21:22,417 --> 01:21:24,542
- because every time
- you need a lab test,
- 1595
- 01:21:24,625 --> 01:21:26,333
- every time your
- family needs a test...
- 1596
- 01:21:26,417 --> 01:21:28,000
- I couldn't feel comfortable
- 1597
- 01:21:28,083 --> 01:21:30,583
- with running these
- tests on patients
- 1598
- 01:21:30,667 --> 01:21:31,959
- because,
- at the end of the day,
- 1599
- 01:21:32,041 --> 01:21:33,625
- I wouldn't run them
- on myself.
- 1600
- 01:21:33,709 --> 01:21:36,000
- I wouldn't run them
- on my family members.
- 1601
- 01:21:36,083 --> 01:21:38,583
- And it just didn't
- make sense that,
- 1602
- 01:21:38,667 --> 01:21:41,333
- internally,
- we had so little faith
- 1603
- 01:21:41,417 --> 01:21:42,583
- in these tests,
- 1604
- 01:21:42,667 --> 01:21:45,375
- but we're still resulting
- them on patients.
- 1605
- 01:21:45,458 --> 01:21:47,125
- Unprecedented transparency...
- 1606
- 01:21:47,208 --> 01:21:49,375
- I finally decided enough is enough.
- 1607
- 01:21:49,458 --> 01:21:52,417
- I went into Sunny's
- office and I said,
- 1608
- 01:21:52,500 --> 01:21:54,000
- "We're not letting
- patients know
- 1609
- 01:21:54,083 --> 01:21:57,667
- when these results are false
- or when we make a mistake."
- 1610
- 01:21:57,750 --> 01:22:00,667
- And effectively,
- what he did is said,
- 1611
- 01:22:00,750 --> 01:22:04,750
- "What makes you think you're
- qualified to make that call?"
- 1612
- 01:22:04,834 --> 01:22:07,542
- And, "You need to just
- sit down and do your job."
- 1613
- 01:22:07,625 --> 01:22:09,417
- Thank you.
- 1614
- 01:22:09,500 --> 01:22:11,208
- At that point, I knew.
- 1615
- 01:22:11,291 --> 01:22:13,542
- It's just unacceptable
- what this company is doing,
- 1616
- 01:22:13,625 --> 01:22:15,417
- and I don't want to be
- a part of that.
- 1617
- 01:22:15,500 --> 01:22:17,959
- The kind of technologies
- that you're building
- 1618
- 01:22:18,041 --> 01:22:21,375
- practically are changing
- people's lives every single day.
- 1619
- 01:22:21,458 --> 01:22:25,125
- I couldn't understand how
- someone could continuously lie.
- 1620
- 01:22:25,208 --> 01:22:27,083
- It really changed
- my perception of her.
- 1621
- 01:22:27,166 --> 01:22:28,875
- That, okay, this person,
- 1622
- 01:22:28,959 --> 01:22:30,709
- you know, plays this role of,
- 1623
- 01:22:30,792 --> 01:22:33,083
- you know, wanting to make
- health care more accessible,
- 1624
- 01:22:33,166 --> 01:22:36,542
- of really trying to leverage
- innovative new technologies
- 1625
- 01:22:36,625 --> 01:22:39,750
- to solve this huge problem
- that we have in health care,
- 1626
- 01:22:39,834 --> 01:22:41,125
- but it's all a show.
- 1627
- 01:22:41,208 --> 01:22:43,792
- I grew up spending summers
- 1628
- 01:22:43,875 --> 01:22:46,583
- and the holidays...
- 1629
- 01:22:46,667 --> 01:22:50,041
- - ...with my uncle. I remember how much I loved him.
- - I have a really vivid memory.
- 1630
- 01:22:50,125 --> 01:22:51,917
- - I loved him so much.
- - He was fine.
- 1631
- 01:22:52,000 --> 01:22:54,959
- He was diagnosed one
- day with skin cancer...
- 1632
- 01:22:55,041 --> 01:22:57,875
- All of a sudden, - And one day,
- he has brain cancer...
- 1633
- 01:22:57,959 --> 01:23:00,417
- - And in his bones...
- - All of a sudden...
- 1634
- 01:23:00,500 --> 01:23:02,750
- He was gone before
- I ever got to...
- 1635
- 01:23:02,834 --> 01:23:05,375
- - My uncle...
- - My uncle...
- 1636
- 01:23:20,291 --> 01:23:22,083
- When I think of Theranos,
- 1637
- 01:23:22,166 --> 01:23:25,166
- I really feel like there were
- two entirely different worlds.
- 1638
- 01:23:25,291 --> 01:23:26,917
- There was the carpeted world,
- 1639
- 01:23:27,000 --> 01:23:29,625
- and there was the tiled world.
- 1640
- 01:23:29,709 --> 01:23:32,917
- In the carpeted world was
- where Elizabeth was a goddess.
- 1641
- 01:23:33,000 --> 01:23:36,417
- Everyone almost worshiped
- the ground she walked on.
- 1642
- 01:23:36,500 --> 01:23:40,917
- She could do no wrong.
- She was the next Steve Jobs.
- 1643
- 01:23:41,000 --> 01:23:43,208
- Theranos was
- changing the world.
- 1644
- 01:23:43,291 --> 01:23:46,375
- And then you go into the tiled
- side and nothing works.
- 1645
- 01:23:46,458 --> 01:23:48,166
- We're on a sinking ship.
- 1646
- 01:23:48,250 --> 01:23:50,250
- Everything's a lie.
- 1647
- 01:23:50,333 --> 01:23:52,250
- Reconciling
- the differences between
- 1648
- 01:23:52,333 --> 01:23:54,917
- those two worlds was
- really hard for me to do.
- 1649
- 01:23:55,000 --> 01:23:57,500
- I knew Elizabeth personally
- from all these
- 1650
- 01:23:57,583 --> 01:24:00,208
- interactions
- through my family,
- 1651
- 01:24:00,875 --> 01:24:03,166
- so I really trusted her.
- I believed in her.
- 1652
- 01:24:03,250 --> 01:24:05,291
- I would leave
- the tiled world thinking,
- 1653
- 01:24:05,375 --> 01:24:06,667
- "Oh man, sinking ship."
- 1654
- 01:24:06,750 --> 01:24:08,559
- And I would go have one
- conversation with Elizabeth.
- 1655
- 01:24:08,583 --> 01:24:11,000
- Theranos was founded with the goal
- 1656
- 01:24:11,083 --> 01:24:13,500
- of creating a more human,
- actionable health experience.
- 1657
- 01:24:13,583 --> 01:24:16,000
- If you can begin to understand your body...
- 1658
- 01:24:16,083 --> 01:24:18,500
- And I would be so
- motivated to go back and work,
- 1659
- 01:24:18,583 --> 01:24:20,423
- and I felt like I was
- changing the world again.
- 1660
- 01:24:20,500 --> 01:24:22,166
- And I would go back
- into the tiled world,
- 1661
- 01:24:22,250 --> 01:24:24,583
- and I would go, wait,
- what just happened?
- 1662
- 01:24:24,667 --> 01:24:27,542
- You want it
- to be true so badly,
- 1663
- 01:24:27,625 --> 01:24:31,500
- and even for me, I was
- working with these devices
- 1664
- 01:24:31,583 --> 01:24:32,834
- every single day,
- 1665
- 01:24:32,917 --> 01:24:35,500
- and she could still
- kind of convince me.
- 1666
- 01:24:37,083 --> 01:24:38,834
- When I think back
- on those conversations,
- 1667
- 01:24:38,917 --> 01:24:41,417
- I just think,
- how did she do that?
- 1668
- 01:24:44,750 --> 01:24:47,542
- You start to believe that
- maybe you're the one who's crazy.
- 1669
- 01:24:47,625 --> 01:24:49,625
- Because everyone else
- thinks this woman's great,
- 1670
- 01:24:49,709 --> 01:24:51,267
- and everyone else wants
- to throw money at her,
- 1671
- 01:24:51,291 --> 01:24:54,875
- wants to be on board with this,
- and wants to be a part of it.
- 1672
- 01:24:54,959 --> 01:24:57,625
- I mean, at the time,
- she was this iconic figure,
- 1673
- 01:24:57,709 --> 01:24:59,917
- this woman in tech who was
- revolutionizing everything,
- 1674
- 01:25:00,000 --> 01:25:03,041
- this Steve Jobs imitation.
- 1675
- 01:25:03,125 --> 01:25:05,458
- Sometimes, you have to think
- maybe you're wrong.
- 1676
- 01:25:10,959 --> 01:25:13,417
- At the time,
- you wondered whether
- 1677
- 01:25:13,500 --> 01:25:17,375
- Elizabeth's connections
- were protecting her.
- 1678
- 01:25:17,458 --> 01:25:21,083
- It kind of caused a bit
- of a crisis of faith
- 1679
- 01:25:21,166 --> 01:25:25,208
- in, you know, just the power
- of government, and how
- 1680
- 01:25:25,291 --> 01:25:27,291
- corrupt or not they were for me.
- 1681
- 01:25:27,375 --> 01:25:29,709
- I thought that Theranos
- was going to get away with it.
- 1682
- 01:25:32,917 --> 01:25:35,166
- You're charging historically low prices,
- 1683
- 01:25:35,250 --> 01:25:37,917
- which is
- a small fraction
- 1684
- 01:25:38,000 --> 01:25:40,000
- of what is
- charged now,
- 1685
- 01:25:40,083 --> 01:25:42,250
- and while maintaining
- the highest standards.
- 1686
- 01:25:42,333 --> 01:25:45,083
- With all her political connections,
- 1687
- 01:25:45,166 --> 01:25:48,125
- she was chummy with
- the Obama administration.
- 1688
- 01:25:48,208 --> 01:25:50,083
- The bet that she made was that
- 1689
- 01:25:50,166 --> 01:25:53,083
- if she surrounded herself
- with powerful people,
- 1690
- 01:25:53,166 --> 01:25:56,333
- the regulators wouldn't get
- confrontational with her.
- 1691
- 01:25:57,208 --> 01:25:58,542
- The end game, I think,
- 1692
- 01:25:58,625 --> 01:26:01,500
- it comes back to
- "fake it until you make it."
- 1693
- 01:26:02,667 --> 01:26:05,583
- Elizabeth never gave up
- on her ultimate vision
- 1694
- 01:26:05,667 --> 01:26:08,250
- to get the device
- not only in stores,
- 1695
- 01:26:08,333 --> 01:26:11,083
- but ultimately,
- in the homes of patients.
- 1696
- 01:26:11,166 --> 01:26:13,750
- She wanted to be like
- Apple and Steve Jobs,
- 1697
- 01:26:13,834 --> 01:26:18,208
- in the sense that Apple
- devices are ubiquitous.
- 1698
- 01:26:18,291 --> 01:26:21,583
- She wanted Edison devices
- in every home in America.
- 1699
- 01:26:24,166 --> 01:26:27,667
- The only thing is you need FDA
- approval to make that happen.
- 1700
- 01:26:33,792 --> 01:26:37,250
- I did talk to the Chief
- Medical person at the FDA,
- 1701
- 01:26:37,333 --> 01:26:40,291
- who expressed some
- skepticism. He said...
- 1702
- 01:26:40,375 --> 01:26:42,768
- "They have not provided enough information
- 1703
- 01:26:42,792 --> 01:26:46,250
- for the agency to clear
- or approve the test."
- 1704
- 01:26:46,333 --> 01:26:47,709
- Accurate?
- 1705
- 01:26:47,792 --> 01:26:49,250
- So, is this something that
- 1706
- 01:26:49,333 --> 01:26:51,792
- - you wanted actually to use in the article?
- - Yes.
- 1707
- 01:26:51,875 --> 01:26:53,542
- Okay,
- so that's part of a challenge
- 1708
- 01:26:53,625 --> 01:26:55,875
- because that our legal team
- is so concerned about this
- 1709
- 01:26:55,959 --> 01:26:58,250
- because there's a lot
- of context behind that.
- 1710
- 01:26:58,333 --> 01:27:00,500
- It creates... causes
- a lot of problems for us.
- 1711
- 01:27:00,583 --> 01:27:02,223
- That's why I'm asking for context.
- 1712
- 01:27:02,250 --> 01:27:05,333
- Give it to me. I'm all ears.
- 1713
- 01:27:05,417 --> 01:27:07,500
- Okay,
- let me talk to our legal team.
- 1714
- 01:27:07,583 --> 01:27:10,750
- Right now, they told me that
- I can't comment on this...
- 1715
- 01:27:10,834 --> 01:27:12,291
- Elizabeth was tap dancing
- 1716
- 01:27:12,375 --> 01:27:14,458
- around her discussions
- with the FDA.
- 1717
- 01:27:14,542 --> 01:27:16,667
- Rather than submit
- full applications,
- 1718
- 01:27:16,750 --> 01:27:20,458
- Theranos flooded the FDA with
- vague exploratory letters,
- 1719
- 01:27:20,542 --> 01:27:22,125
- trying to stall for time,
- 1720
- 01:27:22,208 --> 01:27:23,959
- till the Edisons
- could do all the tests
- 1721
- 01:27:24,041 --> 01:27:25,834
- that Theranos advertised,
- 1722
- 01:27:25,917 --> 01:27:27,500
- and that could take years.
- 1723
- 01:27:29,125 --> 01:27:32,000
- In the meantime, the Theranos
- operation in Palo Alto
- 1724
- 01:27:32,083 --> 01:27:34,000
- was being regulated by CMS,
- 1725
- 01:27:34,083 --> 01:27:37,375
- the federal agency
- in charge of clinical labs.
- 1726
- 01:27:37,458 --> 01:27:40,125
- Theranos was also
- playing games with them.
- 1727
- 01:27:40,208 --> 01:27:43,458
- Even though some patient tests
- were performed on Edisons,
- 1728
- 01:27:43,542 --> 01:27:45,750
- Theranos never reported those.
- 1729
- 01:27:45,834 --> 01:27:49,834
- The company only gave CMS the
- data from third-party machines.
- 1730
- 01:27:50,583 --> 01:27:51,750
- The decision was
- 1731
- 01:27:51,834 --> 01:27:54,000
- let's send what was
- on the Immulite
- 1732
- 01:27:54,083 --> 01:27:55,125
- and on the Siemens Advia.
- 1733
- 01:27:55,208 --> 01:27:58,041
- Let's not send
- the Edison results.
- 1734
- 01:27:58,125 --> 01:27:59,267
- And that really freaked me out
- 1735
- 01:27:59,291 --> 01:28:00,875
- because that was
- suggesting that,
- 1736
- 01:28:00,959 --> 01:28:03,625
- okay, we didn't trust
- the Edison test.
- 1737
- 01:28:03,709 --> 01:28:05,709
- And here, we were able
- to make that discernment
- 1738
- 01:28:05,792 --> 01:28:08,291
- of what was
- the appropriate one to send,
- 1739
- 01:28:08,375 --> 01:28:10,458
- but we weren't doing
- that with patients.
- 1740
- 01:28:12,291 --> 01:28:15,208
- And when CMS came in
- for the inspection,
- 1741
- 01:28:15,291 --> 01:28:17,959
- Sunny and Elizabeth
- only showed them the lab
- 1742
- 01:28:18,041 --> 01:28:20,458
- with the Siemens Advia,
- the Immulite.
- 1743
- 01:28:20,542 --> 01:28:23,542
- They never took them downstairs
- to the secondary lab,
- 1744
- 01:28:23,625 --> 01:28:27,125
- where we processed all the
- fingersticks on the Edisons.
- 1745
- 01:28:27,208 --> 01:28:28,834
- They strictly told us
- 1746
- 01:28:28,917 --> 01:28:30,375
- to stay at your desk.
- 1747
- 01:28:30,458 --> 01:28:31,959
- They didn't want
- any of us down there
- 1748
- 01:28:32,041 --> 01:28:33,917
- 'cause they were scared
- if the inspectors
- 1749
- 01:28:34,000 --> 01:28:37,417
- saw what was going on, that
- could have huge consequences.
- 1750
- 01:28:37,500 --> 01:28:40,583
- It just seemed
- scandalous to us.
- 1751
- 01:28:40,667 --> 01:28:44,542
- It was getting to the point
- where there was really no hope.
- 1752
- 01:28:44,625 --> 01:28:46,083
- You know,
- I'd pretty much decided
- 1753
- 01:28:46,166 --> 01:28:48,166
- that I was
- going to quit.
- 1754
- 01:28:51,750 --> 01:28:53,417
- Right after I resigned,
- 1755
- 01:28:53,500 --> 01:28:57,208
- I went to my grandfather's
- office at Stanford,
- 1756
- 01:28:57,291 --> 01:28:59,542
- and actually showed
- him a lot of data,
- 1757
- 01:28:59,625 --> 01:29:02,041
- and the discrepancy
- between what I was seeing
- 1758
- 01:29:02,125 --> 01:29:03,417
- and what was being published,
- 1759
- 01:29:03,500 --> 01:29:06,083
- and the explanation
- for those differences.
- 1760
- 01:29:06,166 --> 01:29:10,500
- But he didn't really seem
- to believe what I was saying,
- 1761
- 01:29:10,583 --> 01:29:12,500
- and he said,
- "Elizabeth has told me that
- 1762
- 01:29:12,583 --> 01:29:15,375
- "Theranos really can do all the
- things that it says it can do.
- 1763
- 01:29:15,458 --> 01:29:18,041
- "Theranos is more accurate,
- going to change the world.
- 1764
- 01:29:18,125 --> 01:29:20,375
- "They're trying to convince
- me that you're stupid.
- 1765
- 01:29:20,458 --> 01:29:21,935
- "They can't convince
- me that you're stupid,
- 1766
- 01:29:21,959 --> 01:29:23,875
- "but they can convince
- me that you're wrong.
- 1767
- 01:29:23,959 --> 01:29:25,709
- "And I do think
- that you're wrong,
- 1768
- 01:29:25,792 --> 01:29:27,959
- so move on with your life."
- 1769
- 01:29:31,333 --> 01:29:33,375
- A few months afterwards,
- 1770
- 01:29:33,458 --> 01:29:36,166
- John Carreyou from
- the Wall Street Journal
- 1771
- 01:29:36,250 --> 01:29:39,291
- sent me a message on LinkedIn.
- 1772
- 01:29:39,375 --> 01:29:41,333
- I was definitely in a panic.
- 1773
- 01:29:41,417 --> 01:29:42,726
- There were
- confidentiality agreements
- 1774
- 01:29:42,750 --> 01:29:44,390
- that I had signed
- while I was at Theranos.
- 1775
- 01:29:44,458 --> 01:29:47,291
- So, I went and bought
- a burner phone with cash.
- 1776
- 01:29:47,375 --> 01:29:50,500
- I called him,
- and in that phone call,
- 1777
- 01:29:50,583 --> 01:29:52,500
- I decided that I wanted
- to help him out.
- 1778
- 01:29:53,917 --> 01:29:57,667
- I said, my grandfather
- made it through Watergate,
- 1779
- 01:29:57,750 --> 01:29:59,166
- and the Iran-Contra scandal
- 1780
- 01:29:59,250 --> 01:30:02,583
- with his integrity
- completely intact.
- 1781
- 01:30:02,667 --> 01:30:04,709
- Once he becomes aware of
- the fraud that's happening,
- 1782
- 01:30:04,792 --> 01:30:07,667
- he will do everything
- he can to make things right.
- 1783
- 01:30:07,750 --> 01:30:09,267
- And I want to give
- him that opportunity
- 1784
- 01:30:09,291 --> 01:30:12,917
- because, I think he was 94,
- 95 at the time.
- 1785
- 01:30:14,375 --> 01:30:16,667
- So, I met with John in person,
- 1786
- 01:30:16,750 --> 01:30:19,375
- and then he sent Theranos
- 1787
- 01:30:19,458 --> 01:30:21,500
- some prodding questions,
- 1788
- 01:30:21,583 --> 01:30:24,291
- and there was just
- one number in there.
- 1789
- 01:30:24,375 --> 01:30:27,667
- 42.9% that I had calculated
- for one of these tests,
- 1790
- 01:30:27,750 --> 01:30:31,166
- that was also in an e-mail
- that I had sent to Elizabeth.
- 1791
- 01:30:35,458 --> 01:30:36,875
- About a month after that,
- 1792
- 01:30:36,959 --> 01:30:39,542
- I went to go have dinner
- with my parents.
- 1793
- 01:30:39,625 --> 01:30:41,542
- I walk in the door,
- and my dad says,
- 1794
- 01:30:41,625 --> 01:30:44,375
- "Have you been speaking to a
- Wall Street Journal reporter?"
- 1795
- 01:30:44,458 --> 01:30:47,375
- And I said yes.
- 1796
- 01:30:47,458 --> 01:30:49,250
- And he said,
- "Well, they know."
- 1797
- 01:30:55,041 --> 01:30:56,458
- After I leave Theranos,
- 1798
- 01:30:56,542 --> 01:30:59,875
- I kind of want to be as far
- away from them as possible.
- 1799
- 01:30:59,959 --> 01:31:02,792
- I was working another job,
- and at this point,
- 1800
- 01:31:02,875 --> 01:31:06,250
- I had talked to John Carreyrou
- from the Wall Street Journal,
- 1801
- 01:31:06,333 --> 01:31:08,542
- who was doing
- an investigative report.
- 1802
- 01:31:11,542 --> 01:31:13,917
- So, I'm at work one day.
- I'm working late,
- 1803
- 01:31:14,000 --> 01:31:15,792
- and two of my
- colleagues are leaving,
- 1804
- 01:31:15,875 --> 01:31:17,917
- and I'm going to be
- the only one in the building.
- 1805
- 01:31:18,000 --> 01:31:20,125
- And they look outside,
- and they're like, "Hey, Erika.
- 1806
- 01:31:20,208 --> 01:31:22,008
- "There's been this guy
- who's just been sitting
- 1807
- 01:31:22,041 --> 01:31:25,750
- in our parking lot
- for the whole day."
- 1808
- 01:31:25,834 --> 01:31:28,458
- And that's very unusual.
- 1809
- 01:31:31,417 --> 01:31:34,083
- So, they walk me to my car,
- 1810
- 01:31:34,166 --> 01:31:37,500
- and then this guy comes up,
- and he gives me this letter.
- 1811
- 01:31:37,583 --> 01:31:40,166
- And it has the address
- of this temporary home
- 1812
- 01:31:40,250 --> 01:31:43,750
- that I'm staying at,
- so no one knows this address.
- 1813
- 01:31:43,834 --> 01:31:47,166
- And I open it, and it's
- a letter from David Boies.
- 1814
- 01:31:48,000 --> 01:31:50,458
- "If you don't come forward with
- 1815
- 01:31:50,542 --> 01:31:53,291
- "X, Y, and Z document,
- or report these people,
- 1816
- 01:31:53,375 --> 01:31:55,875
- there's a potential
- that we could sue you."
- 1817
- 01:31:57,166 --> 01:31:59,333
- It was quite,
- quite scary for me.
- 1818
- 01:31:59,417 --> 01:32:01,333
- Especially coming
- from a position of,
- 1819
- 01:32:01,417 --> 01:32:03,834
- what, I was 23 at that point?
- 1820
- 01:32:03,917 --> 01:32:06,375
- You know, I had not really
- 1821
- 01:32:06,458 --> 01:32:09,333
- not really any money to spend
- on lawyers or anything.
- 1822
- 01:32:09,417 --> 01:32:11,166
- I was really freaked out.
- 1823
- 01:32:14,250 --> 01:32:16,250
- I'd been asking for an interview
- 1824
- 01:32:16,333 --> 01:32:18,166
- with Elizabeth
- for several months,
- 1825
- 01:32:18,250 --> 01:32:21,083
- and they were giving
- me the runaround.
- 1826
- 01:32:21,166 --> 01:32:24,166
- Finally, in June 2015,
- 1827
- 01:32:24,250 --> 01:32:27,583
- we agreed that we'd have a
- meeting at the Journal offices.
- 1828
- 01:32:28,875 --> 01:32:31,834
- This Theranos delegation
- comes in, it's seven people,
- 1829
- 01:32:31,917 --> 01:32:33,750
- four of whom are lawyers,
- 1830
- 01:32:33,834 --> 01:32:37,875
- led by David Boies, and one of the
- other lawyers is Heather King...
- 1831
- 01:32:37,959 --> 01:32:40,083
- Heather has just joined
- us as our general counsel.
- 1832
- 01:32:40,166 --> 01:32:43,208
- ...who had been a Boies Schiller partner,
- 1833
- 01:32:43,291 --> 01:32:45,792
- former Hillary Clinton aide.
- 1834
- 01:32:45,875 --> 01:32:49,000
- Couple of minutes into
- the meeting, Heather King
- 1835
- 01:32:49,083 --> 01:32:51,500
- puts a little tape recorder
- down on the table.
- 1836
- 01:32:51,583 --> 01:32:52,875
- Another Boies Schiller attorney
- 1837
- 01:32:52,959 --> 01:32:54,875
- put a little tape recorder
- 1838
- 01:32:54,959 --> 01:32:56,667
- on the other end of
- the conference table,
- 1839
- 01:32:56,750 --> 01:32:58,250
- and it was very clear
- 1840
- 01:32:58,333 --> 01:33:00,000
- that they were approaching this
- 1841
- 01:33:00,083 --> 01:33:02,417
- as a deposition
- in a legal proceeding.
- 1842
- 01:33:02,500 --> 01:33:05,417
- If they were going to record,
- then I was going to record as well.
- 1843
- 01:33:05,500 --> 01:33:07,959
- Okay, so,
- you know, we're here today
- 1844
- 01:33:08,041 --> 01:33:11,083
- to do our part to help
- educate you on what
- 1845
- 01:33:11,166 --> 01:33:12,750
- I, at least, believe are some,
- 1846
- 01:33:12,834 --> 01:33:15,792
- you know, false premises upon
- which the questions are based.
- 1847
- 01:33:15,875 --> 01:33:19,208
- They're very serious questions,
- and there's some very serious
- 1848
- 01:33:19,291 --> 01:33:22,083
- allegations in those questions.
- 1849
- 01:33:22,166 --> 01:33:24,083
- I also turn to David Boies.
- 1850
- 01:33:24,166 --> 01:33:26,250
- David attends all
- the board meetings.
- 1851
- 01:33:26,333 --> 01:33:29,375
- We wouldn't be here,
- spend all this time and effort
- 1852
- 01:33:29,458 --> 01:33:31,375
- if the, you know,
- 1853
- 01:33:31,458 --> 01:33:34,267
- - we've got a technology...
- - So, why don't we discuss it more freely?
- 1854
- 01:33:34,291 --> 01:33:36,625
- Yeah, because it's trade secret!
- That's why!
- 1855
- 01:33:36,709 --> 01:33:38,542
- And because you
- won't sign an NDA!
- 1856
- 01:33:38,625 --> 01:33:40,184
- Is there really new technology?
- 1857
- 01:33:40,208 --> 01:33:41,417
- That's the point.
- 1858
- 01:33:41,500 --> 01:33:43,041
- Is it really new technology...
- 1859
- 01:33:43,125 --> 01:33:45,125
- This something no one's
- been able to do before.
- 1860
- 01:33:45,208 --> 01:33:47,375
- Okay? Theranos is doing it.
- 1861
- 01:33:47,458 --> 01:33:51,500
- And unless it's magic, it's a new technology.
- 1862
- 01:33:51,583 --> 01:33:53,875
- I knew that most
- of their blood tests
- 1863
- 01:33:53,959 --> 01:33:56,375
- were run on
- commercial analyzers
- 1864
- 01:33:56,458 --> 01:33:58,417
- made by third
- party companies.
- 1865
- 01:33:58,500 --> 01:34:01,375
- And so I said,
- how can this even fall
- 1866
- 01:34:01,458 --> 01:34:03,834
- under the bucket
- of trade secrets,
- 1867
- 01:34:03,917 --> 01:34:05,583
- if these aren't even
- Theranos machines.
- 1868
- 01:34:05,667 --> 01:34:08,417
- Are you saying that
- the trade secrets also covers
- 1869
- 01:34:08,500 --> 01:34:10,583
- the way in which you
- run a blood sample
- 1870
- 01:34:10,667 --> 01:34:12,000
- on the Siemens Advia?
- 1871
- 01:34:12,083 --> 01:34:14,166
- I think,
- I don't know the answer to that,
- 1872
- 01:34:14,250 --> 01:34:16,917
- but I can tell you that
- it could or it could not.
- 1873
- 01:34:17,000 --> 01:34:19,680
- It just feels like you want
- us to give you the formula for Coke
- 1874
- 01:34:19,750 --> 01:34:21,685
- in order to convince you that
- it doesn't contain arsenic.
- 1875
- 01:34:21,709 --> 01:34:23,393
- Nobody's asked for the formula for Coke.
- 1876
- 01:34:23,417 --> 01:34:25,166
- We're looking for
- a generic explanation.
- 1877
- 01:34:25,250 --> 01:34:27,083
- You don't need to know how they work.
- 1878
- 01:34:30,917 --> 01:34:33,166
- It sounds like the Wizard of Oz...
- 1879
- 01:34:33,291 --> 01:34:35,250
- So, we went around in circles,
- 1880
- 01:34:35,333 --> 01:34:39,000
- and the fact that
- they were stonewalling
- 1881
- 01:34:39,083 --> 01:34:41,917
- in such a strong way,
- 1882
- 01:34:42,000 --> 01:34:44,583
- made me feel like
- we were on the right track.
- 1883
- 01:34:44,667 --> 01:34:48,375
- You know,
- it seems apparent to us that certainly
- 1884
- 01:34:48,458 --> 01:34:51,458
- one of your key sources is
- a young man named Tyler Shultz
- 1885
- 01:34:51,542 --> 01:34:53,667
- because the concerns
- that you are raising
- 1886
- 01:34:53,750 --> 01:34:55,166
- precisely are concerns
- 1887
- 01:34:55,250 --> 01:34:57,000
- that he raised in
- the very brief time
- 1888
- 01:34:57,083 --> 01:34:58,667
- that he was at our company.
- 1889
- 01:34:58,750 --> 01:35:00,393
- I don't know, I don't
- remember his exact words,
- 1890
- 01:35:00,417 --> 01:35:02,417
- but he said, "Well,
- they know. They know."
- 1891
- 01:35:02,500 --> 01:35:04,917
- So, I called my grandfather
- and he said,
- 1892
- 01:35:05,000 --> 01:35:08,208
- "Elizabeth tells me that
- you've been speaking...
- 1893
- 01:35:08,291 --> 01:35:10,500
- "that you've been giving
- trade secrets away
- 1894
- 01:35:10,583 --> 01:35:12,208
- "to the Wall Street Journal,
- 1895
- 01:35:12,291 --> 01:35:15,542
- "and, you know, if this
- story gets published,
- 1896
- 01:35:15,625 --> 01:35:19,208
- "that essentially, your career
- will be ruined, but...
- 1897
- 01:35:19,291 --> 01:35:21,667
- "there's a one-page
- confidentiality agreement
- 1898
- 01:35:21,750 --> 01:35:23,709
- you can sign to just
- make it all go away."
- 1899
- 01:35:23,792 --> 01:35:27,834
- And so, I go to his house the next morning,
- and he said, "Okay, well,
- 1900
- 01:35:27,917 --> 01:35:31,000
- there are actually two Theranos
- lawyers here right now."
- 1901
- 01:35:31,083 --> 01:35:32,625
- I was...
- 1902
- 01:35:32,709 --> 01:35:35,333
- extremely nervous about
- what was going to happen,
- 1903
- 01:35:35,417 --> 01:35:37,250
- very uncomfortable
- with the whole situation.
- 1904
- 01:35:37,333 --> 01:35:39,500
- They come in
- and they give me
- 1905
- 01:35:39,583 --> 01:35:43,375
- a notice to appear in court
- in about 36 hours,
- 1906
- 01:35:43,458 --> 01:35:46,125
- a temporary restraining order,
- 1907
- 01:35:46,208 --> 01:35:49,917
- and a letter signed
- by David Boies.
- 1908
- 01:35:50,000 --> 01:35:53,083
- They really made me feel
- like I was alone.
- 1909
- 01:35:53,166 --> 01:35:55,500
- I was the underdog.
- I was going to get crushed.
- 1910
- 01:35:55,583 --> 01:35:57,750
- Good morning,
- Mr. Secretary.
- 1911
- 01:35:57,834 --> 01:35:59,083
- Good morning.
- 1912
- 01:35:59,166 --> 01:36:02,208
- Do you recall a time when
- Tyler came to your home,
- 1913
- 01:36:02,291 --> 01:36:03,500
- and there were
- some attorneys
- 1914
- 01:36:03,583 --> 01:36:05,250
- from the Boies
- Schiller firm there?
- 1915
- 01:36:05,333 --> 01:36:07,500
- I wouldn't call them attorneys.
- 1916
- 01:36:07,583 --> 01:36:11,083
- The man was some
- sort of an animal.
- 1917
- 01:36:12,166 --> 01:36:14,250
- Wild animal,
- 1918
- 01:36:14,333 --> 01:36:17,208
- and he assaulted my grandson.
- 1919
- 01:36:17,291 --> 01:36:20,041
- Was one of the dumbest
- things I've ever observed.
- 1920
- 01:36:20,125 --> 01:36:22,959
- When you say that
- the man assaulted
- 1921
- 01:36:23,041 --> 01:36:24,250
- your grandson,
- can you be...
- 1922
- 01:36:24,333 --> 01:36:27,333
- Verbally, verbally,
- he just went after him.
- 1923
- 01:36:27,417 --> 01:36:28,792
- If it hadn't ended when it did,
- 1924
- 01:36:28,875 --> 01:36:30,750
- my wife was about
- to pick an iron out,
- 1925
- 01:36:30,834 --> 01:36:33,959
- hand iron right out of the
- fireplace and clobber him.
- 1926
- 01:36:36,625 --> 01:36:38,750
- My grandfather physically separates us,
- 1927
- 01:36:38,834 --> 01:36:40,959
- and puts the Theranos
- lawyers in the living room,
- 1928
- 01:36:41,041 --> 01:36:42,417
- and I'm in the dining room,
- 1929
- 01:36:42,500 --> 01:36:44,625
- and he's going between
- the two rooms negotiating...
- 1930
- 01:36:44,709 --> 01:36:47,750
- - Like a Secretary of State.
- - Like a Secretary of State.
- 1931
- 01:36:47,834 --> 01:36:52,500
- And my grandfather
- seemed like he had grown...
- 1932
- 01:36:52,583 --> 01:36:55,917
- that his allegiance to Elizabeth and
- Theranos had grown even stronger.
- 1933
- 01:36:56,000 --> 01:36:58,375
- Do you have
- a high opinion of Ms. Holmes?
- 1934
- 01:36:58,458 --> 01:37:00,083
- Yes.
- 1935
- 01:37:00,166 --> 01:37:02,792
- Do you believe that
- Ms. Holmes was truthful
- 1936
- 01:37:02,875 --> 01:37:05,208
- with you in all of your
- interactions with her?
- 1937
- 01:37:05,291 --> 01:37:06,792
- Yes, I think so.
- 1938
- 01:37:06,875 --> 01:37:08,959
- In any of her
- interactions with you,
- 1939
- 01:37:09,041 --> 01:37:11,583
- did Ms. Holmes
- ever do anything
- 1940
- 01:37:11,667 --> 01:37:13,083
- to give you
- reason to believe
- 1941
- 01:37:13,166 --> 01:37:15,125
- that she was trying
- to deceive you?
- 1942
- 01:37:15,208 --> 01:37:16,333
- No.
- 1943
- 01:37:18,125 --> 01:37:19,417
- Yeah, that's when...
- 1944
- 01:37:19,500 --> 01:37:22,291
- lawyers became a really
- big part of my life.
- 1945
- 01:37:22,375 --> 01:37:24,458
- They were threatening
- to sue me for
- 1946
- 01:37:24,542 --> 01:37:26,458
- violating my
- nondisclosure agreement,
- 1947
- 01:37:26,542 --> 01:37:28,625
- for giving up trade secrets.
- 1948
- 01:37:28,709 --> 01:37:31,667
- Many times, I had written
- notices to appear in court,
- 1949
- 01:37:31,750 --> 01:37:34,875
- and at the last minute,
- they would cancel it.
- 1950
- 01:37:35,834 --> 01:37:37,083
- Overall, my parents
- 1951
- 01:37:37,166 --> 01:37:40,667
- spent between
- 400 and $500,000
- 1952
- 01:37:40,750 --> 01:37:42,709
- in legal fees.
- 1953
- 01:37:42,792 --> 01:37:44,250
- It was getting
- to the point where
- 1954
- 01:37:44,333 --> 01:37:47,417
- we needed to find money
- somewhere, so they...
- 1955
- 01:37:47,500 --> 01:37:49,250
- they said that they
- would sell their house
- 1956
- 01:37:49,333 --> 01:37:51,000
- to keep fighting
- this legal battle.
- 1957
- 01:37:53,542 --> 01:37:55,834
- So,
- I ended up talking to a lawyer,
- 1958
- 01:37:55,917 --> 01:37:57,792
- and they said, they're
- trying to scare you.
- 1959
- 01:37:57,875 --> 01:38:01,208
- And he said, one of the options that
- you can do is you can whistle-blow.
- 1960
- 01:38:01,333 --> 01:38:04,458
- You could be protected if you
- talked to a regulatory agency.
- 1961
- 01:38:04,542 --> 01:38:09,125
- And I'm like, what regulatory
- agency? How do you that?
- 1962
- 01:38:09,208 --> 01:38:12,125
- I've been nervous to send
- or even write this letter.
- 1963
- 01:38:12,208 --> 01:38:16,166
- Theranos takes confidentiality and
- secrecy to an extreme level...
- 1964
- 01:38:16,250 --> 01:38:18,101
- Mistakes always happen in a clinical lab,
- 1965
- 01:38:18,125 --> 01:38:20,875
- but what went on in Theranos
- was complete negligence
- 1966
- 01:38:20,959 --> 01:38:23,250
- and honestly felt
- criminal in many ways.
- 1967
- 01:38:23,333 --> 01:38:25,834
- Upper level management
- constantly made excuses
- 1968
- 01:38:25,917 --> 01:38:28,500
- for their misgivings...
- but they continue to...
- 1969
- 01:38:32,750 --> 01:38:36,583
- I don't feel like it's sort
- of a cold-blooded scam, right?
- 1970
- 01:38:37,417 --> 01:38:39,041
- It just seems it started off
- 1971
- 01:38:39,125 --> 01:38:41,000
- as something small,
- like one lie,
- 1972
- 01:38:41,083 --> 01:38:44,333
- and snowballed into this really
- 1973
- 01:38:44,417 --> 01:38:46,750
- crazy situation.
- 1974
- 01:38:46,834 --> 01:38:48,333
- ♪ Can't touch this ♪
- 1975
- 01:38:50,417 --> 01:38:52,083
- ♪ Can't touch this ♪
- 1976
- 01:38:54,000 --> 01:38:55,417
- ♪ Can't touch this ♪
- 1977
- 01:38:55,500 --> 01:38:57,542
- ♪ Oh, oh, oh, oh, oh, oh, oh ♪
- 1978
- 01:38:57,625 --> 01:38:58,792
- ♪ Can't touch this ♪
- 1979
- 01:38:58,875 --> 01:39:00,083
- ♪ Oh, oh, oh, oh, oh, oh, oh ♪
- 1980
- 01:39:00,166 --> 01:39:02,166
- ♪ My, my, my music ♪
- 1981
- 01:39:02,250 --> 01:39:05,125
- ♪ Keeps me so hard,
- makes me say oh my Lord ♪
- 1982
- 01:39:05,208 --> 01:39:06,875
- ♪ Thank you for blessing me ♪
- 1983
- 01:39:06,959 --> 01:39:08,875
- ♪ With a mind to rhyme
- and two hype feet ♪
- 1984
- 01:39:08,959 --> 01:39:10,667
- ♪ That's good when
- you know you're down ♪
- 1985
- 01:39:10,750 --> 01:39:12,625
- ♪ A super dope homeboy
- from the Oaktown ♪
- 1986
- 01:39:12,709 --> 01:39:15,041
- So, what do you guys think
- about the FDA clearance?
- 1987
- 01:39:19,125 --> 01:39:20,875
- ♪ Can't touch this ♪
- 1988
- 01:39:20,959 --> 01:39:24,041
- It was around the 4th of July of 2015.
- 1989
- 01:39:24,125 --> 01:39:26,375
- It was euphoria at the company.
- 1990
- 01:39:26,458 --> 01:39:29,333
- It was, you know...
- 1991
- 01:39:29,417 --> 01:39:30,625
- ♪ Bust the funky lyrics ♪
- 1992
- 01:39:30,709 --> 01:39:32,208
- ♪ Fresh new kicks and pants ♪
- 1993
- 01:39:32,291 --> 01:39:34,226
- ♪ You got it like that,
- now you know you wanna dance ♪
- 1994
- 01:39:34,250 --> 01:39:35,959
- This is a very
- meaningful milestone
- 1995
- 01:39:36,041 --> 01:39:37,417
- for both Elizabeth and Sunny.
- 1996
- 01:39:37,500 --> 01:39:39,875
- It felt like a great
- victory at the time.
- 1997
- 01:39:42,792 --> 01:39:46,083
- It was a big
- celebration for a little victory.
- 1998
- 01:39:46,166 --> 01:39:47,917
- The FDA had finally approved
- 1999
- 01:39:48,000 --> 01:39:50,333
- one rarely used test for herpes
- 2000
- 01:39:50,417 --> 01:39:53,000
- to be run on
- an Edison prototype.
- 2001
- 01:39:53,083 --> 01:39:54,959
- That was too little
- too late for Walgreens,
- 2002
- 01:39:55,041 --> 01:39:57,917
- which put the brakes on
- opening new Wellness Centers.
- 2003
- 01:39:58,000 --> 01:39:59,583
- And while Theranos
- had boasted revenues
- 2004
- 01:39:59,667 --> 01:40:02,709
- of more than a billion
- dollars for 2015,
- 2005
- 01:40:02,792 --> 01:40:06,208
- the actual cash in the door was
- only a few hundred thousand.
- 2006
- 01:40:07,709 --> 01:40:10,500
- But Elizabeth and Sunny
- were not backing down.
- 2007
- 01:40:10,583 --> 01:40:13,208
- We are going to send a
- message to Quest Diagnostics.
- 2008
- 01:40:13,291 --> 01:40:16,083
- Remember, these are
- the guys who are after us,
- 2009
- 01:40:16,166 --> 01:40:18,326
- and they're attacking the work
- that you guys are doing.
- 2010
- 01:40:18,375 --> 01:40:20,291
- - Are you ready?
- - Yeah!
- 2011
- 01:40:20,375 --> 01:40:22,291
- Okay. One,
- 2012
- 01:40:22,375 --> 01:40:23,875
- two, three.
- 2013
- 01:40:23,959 --> 01:40:25,333
- Fuck you!
- 2014
- 01:40:50,083 --> 01:40:52,959
- I saw the alert when I got up in the morning,
- 2015
- 01:40:53,041 --> 01:40:55,458
- and I read it by my bed.
- 2016
- 01:40:55,542 --> 01:40:58,667
- It had this really
- understated headline.
- 2017
- 01:41:00,583 --> 01:41:03,959
- But the contents of the article
- were just devastating.
- 2018
- 01:41:13,792 --> 01:41:17,583
- When I got to work,
- I read it a couple more times.
- 2019
- 01:41:18,041 --> 01:41:21,667
- Suddenly, all of the trade
- secret stuff made sense.
- 2020
- 01:41:21,750 --> 01:41:24,333
- Oh, I see. It's
- not a trade secret.
- 2021
- 01:41:24,417 --> 01:41:26,000
- Um...
- 2022
- 01:41:26,083 --> 01:41:28,792
- It's a different kind
- of secret, and, um...
- 2023
- 01:41:36,542 --> 01:41:40,375
- I did not know that Siemens were being used
- 2024
- 01:41:40,458 --> 01:41:43,208
- until after the article hit.
- 2025
- 01:41:43,291 --> 01:41:45,375
- And then
- that kind of explains
- 2026
- 01:41:45,458 --> 01:41:47,458
- why we were doing
- venipuncture,
- 2027
- 01:41:47,542 --> 01:41:50,625
- as opposed to the
- fingerstick collection.
- 2028
- 01:41:50,709 --> 01:41:55,083
- I then started...
- revamping my résumé.
- 2029
- 01:41:57,083 --> 01:41:58,417
- I'm sorry, but I did!
- 2030
- 01:42:04,250 --> 01:42:06,208
- I was lucky when the Wall Street Journal
- 2031
- 01:42:06,291 --> 01:42:08,542
- actually ended up
- publishing their article
- 2032
- 01:42:08,625 --> 01:42:09,875
- because once that happened,
- 2033
- 01:42:09,959 --> 01:42:12,208
- Theranos' efforts
- were focused elsewhere.
- 2034
- 01:42:12,333 --> 01:42:14,291
- We never went to court.
- We never...
- 2035
- 01:42:14,375 --> 01:42:16,709
- had any sort of settlement.
- It just kind of died.
- 2036
- 01:42:19,041 --> 01:42:21,667
- The fate and future
- of the company was at stake.
- 2037
- 01:42:22,875 --> 01:42:26,083
- So, we gathered
- in our cafeteria.
- 2038
- 01:42:26,166 --> 01:42:30,250
- Elizabeth and Sunny spoke
- to what was happening,
- 2039
- 01:42:30,333 --> 01:42:32,291
- and that these
- allegations are not true.
- 2040
- 01:42:33,375 --> 01:42:35,667
- And then, Elizabeth
- made a comment about
- 2041
- 01:42:35,750 --> 01:42:39,041
- taking on the Wall Street
- Journal as a fight.
- 2042
- 01:42:45,208 --> 01:42:46,333
- I knew immediately
- 2043
- 01:42:46,417 --> 01:42:48,500
- when I woke up
- that day that the article
- 2044
- 01:42:48,583 --> 01:42:51,250
- was having impact
- because e-mails from readers
- 2045
- 01:42:51,375 --> 01:42:53,709
- and from colleagues were
- flowing in to my inbox.
- 2046
- 01:42:53,792 --> 01:42:55,917
- And I was also getting asked
- 2047
- 01:42:56,000 --> 01:42:57,959
- to do various media interviews.
- 2048
- 01:42:58,041 --> 01:42:59,601
- New Wall Street Journal story
- 2049
- 01:42:59,667 --> 01:43:01,750
- by John Carreyrou.
- Thanks for joining us, John...
- 2050
- 01:43:01,834 --> 01:43:04,166
- The article was a wake-up call
- 2051
- 01:43:04,250 --> 01:43:06,333
- for Silicon Valley.
- 2052
- 01:43:06,417 --> 01:43:08,875
- This sort of gold rush
- had been going on.
- 2053
- 01:43:08,959 --> 01:43:10,959
- These unicorns
- had been created.
- 2054
- 01:43:11,041 --> 01:43:14,625
- Companies that have valuations
- of more than a billion dollars.
- 2055
- 01:43:14,709 --> 01:43:16,625
- They were staying
- private much longer
- 2056
- 01:43:16,709 --> 01:43:20,250
- than start-ups had in the
- dot-com boom of the late '90s.
- 2057
- 01:43:20,375 --> 01:43:23,166
- And as a result, they were
- able to be less transparent
- 2058
- 01:43:23,250 --> 01:43:25,083
- than companies
- that have to report
- 2059
- 01:43:25,208 --> 01:43:26,917
- to investors every quarter.
- 2060
- 01:43:27,000 --> 01:43:29,750
- And I think suddenly there was
- a realization in Silicon Valley
- 2061
- 01:43:29,834 --> 01:43:33,750
- that this has allowed
- fraud to thrive.
- 2062
- 01:43:38,625 --> 01:43:40,625
- Obviously,
- when I called Theranos
- 2063
- 01:43:40,750 --> 01:43:42,470
- and tried to speak
- to Elizabeth and was told
- 2064
- 01:43:42,542 --> 01:43:45,792
- that she was going to be
- unavailable all day.
- 2065
- 01:43:45,917 --> 01:43:50,375
- She was being inducted into the Harvard
- Medical School Board of Fellows.
- 2066
- 01:43:52,458 --> 01:43:56,166
- And, um...
- I was just stunned.
- 2067
- 01:43:56,250 --> 01:43:57,959
- I was thinking in my mind,
- 2068
- 01:43:58,041 --> 01:44:00,083
- the Wall Street Journal
- has just said...
- 2069
- 01:44:01,208 --> 01:44:03,792
- that you're a fraud, and that
- you're company is a fraud,
- 2070
- 01:44:03,917 --> 01:44:07,583
- and the company I put on the
- cover of a magazine is a fraud,
- 2071
- 01:44:08,500 --> 01:44:10,500
- and you're going to spend...
- 2072
- 01:44:13,750 --> 01:44:15,417
- the whole day...
- 2073
- 01:44:18,333 --> 01:44:21,250
- hiding out at this, uh...
- 2074
- 01:44:24,041 --> 01:44:25,625
- at this, uh...
- 2075
- 01:44:27,917 --> 01:44:30,542
- honorary horseshit, you know?
- 2076
- 01:44:30,625 --> 01:44:32,500
- You need to get out here,
- 2077
- 01:44:32,583 --> 01:44:34,667
- and go through this article,
- 2078
- 01:44:34,750 --> 01:44:37,333
- paragraph by paragraph,
- 2079
- 01:44:37,417 --> 01:44:41,208
- explaining what the fuck's
- going on at your company.
- 2080
- 01:44:44,417 --> 01:44:45,685
- Your article was pretty brutal,
- 2081
- 01:44:45,709 --> 01:44:47,226
- but here on Mad Money,
- we know something.
- 2082
- 01:44:47,250 --> 01:44:49,959
- We know that there are two
- sides to every single story.
- 2083
- 01:44:50,041 --> 01:44:52,458
- Coming to us this
- afternoon from Boston,
- 2084
- 01:44:52,542 --> 01:44:54,434
- where she's attending a meeting
- of the Board of Fellows
- 2085
- 01:44:54,458 --> 01:44:57,291
- at Harvard Medical School,
- to give her a chance to answer
- 2086
- 01:44:57,375 --> 01:44:59,083
- the charges raised
- in the article.
- 2087
- 01:44:59,166 --> 01:45:01,750
- Ms. Holmes, welcome
- back to Mad Money.
- 2088
- 01:45:01,834 --> 01:45:03,250
- It's great to be
- here, thank you.
- 2089
- 01:45:03,333 --> 01:45:06,083
- This is what happens when
- you work to change things,
- 2090
- 01:45:06,166 --> 01:45:09,375
- and first they think you're
- crazy, then they fight you.
- 2091
- 01:45:09,458 --> 01:45:11,709
- And then, all of a sudden,
- you change the world.
- 2092
- 01:45:11,792 --> 01:45:14,083
- And, um, I have to say,
- 2093
- 01:45:14,166 --> 01:45:16,542
- I personally was
- shocked to see that
- 2094
- 01:45:16,625 --> 01:45:18,875
- the Journal would publish
- something like this.
- 2095
- 01:45:18,959 --> 01:45:21,458
- Every single one
- of the sources that
- 2096
- 01:45:21,542 --> 01:45:24,458
- we spoke with who the Journal
- had contacted told us
- 2097
- 01:45:24,542 --> 01:45:27,333
- that the statements that were
- being attributed to them
- 2098
- 01:45:27,417 --> 01:45:29,333
- were false or
- misleading...
- 2099
- 01:45:29,417 --> 01:45:34,375
- She decided to come out
- and address my story and rebut it.
- 2100
- 01:45:34,458 --> 01:45:37,709
- Theranos issued a press release
- calling my reporting false,
- 2101
- 01:45:37,792 --> 01:45:40,500
- and they were threatening
- us with litigation.
- 2102
- 01:45:40,583 --> 01:45:43,125
- The journalism here has been so bad,
- 2103
- 01:45:43,208 --> 01:45:44,750
- they deserve to be sued,
- 2104
- 01:45:44,834 --> 01:45:47,917
- but lawsuits
- rarely resolve issues.
- 2105
- 01:45:48,000 --> 01:45:50,542
- What's going to resolve
- this issue is the science,
- 2106
- 01:45:50,625 --> 01:45:52,125
- the marketplace.
- 2107
- 01:45:52,208 --> 01:45:55,500
- Um, the company has been
- successful in Arizona.
- 2108
- 01:45:56,375 --> 01:45:58,125
- Doctors are happy,
- patients are happy...
- 2109
- 01:45:58,208 --> 01:46:00,917
- Doctors and patients were not happy.
- 2110
- 01:46:01,000 --> 01:46:03,500
- The FDA was so worried
- about patient safety
- 2111
- 01:46:03,583 --> 01:46:05,750
- that it banned the use
- of the nanotainer,
- 2112
- 01:46:05,834 --> 01:46:09,417
- putting an end to all
- fingerstick tests at Walgreens.
- 2113
- 01:46:09,500 --> 01:46:12,875
- CMS conducted a surprise
- inspection of the Theranos lab,
- 2114
- 01:46:12,959 --> 01:46:15,959
- and found the blood
- testing so inaccurate,
- 2115
- 01:46:16,041 --> 01:46:18,542
- that it posed a threat
- to patient safety,
- 2116
- 01:46:18,625 --> 01:46:20,583
- likely to cause serious injury,
- 2117
- 01:46:20,667 --> 01:46:22,500
- harm, or death.
- 2118
- 01:46:22,583 --> 01:46:26,291
- CMS revoked the lab's
- license to operate.
- 2119
- 01:46:26,375 --> 01:46:28,625
- The letter that
- prompted CMS to act
- 2120
- 01:46:28,709 --> 01:46:31,000
- came from Erika Cheung.
- 2121
- 01:46:32,041 --> 01:46:33,393
- You know, in the end for me,
- 2122
- 01:46:33,417 --> 01:46:35,583
- it was a bit
- of a mixed feeling.
- 2123
- 01:46:35,667 --> 01:46:38,667
- I was really excited because
- the truth finally got out.
- 2124
- 01:46:38,750 --> 01:46:42,208
- But then also, a bit of
- sadness in the fact that, um...
- 2125
- 01:46:42,291 --> 01:46:44,625
- you know, we all really wanted
- that project to succeed.
- 2126
- 01:46:44,709 --> 01:46:48,083
- Have you been able to win your argument
- 2127
- 01:46:48,166 --> 01:46:50,417
- with your grandfather
- in terms of persuading him
- 2128
- 01:46:50,500 --> 01:46:52,291
- of the problems
- at Theranos?
- 2129
- 01:46:52,375 --> 01:46:56,041
- He said that he had no idea
- how much deception there was,
- 2130
- 01:46:56,125 --> 01:46:58,667
- and that he was proud of me.
- 2131
- 01:46:58,750 --> 01:47:00,166
- Yeah.
- 2132
- 01:47:00,250 --> 01:47:04,917
- Yeah, I'm glad he finally
- really gets it.
- 2133
- 01:47:08,500 --> 01:47:11,250
- There was a Journal technology conference
- 2134
- 01:47:11,333 --> 01:47:15,291
- taking place in Laguna Beach
- in late October 2015,
- 2135
- 01:47:15,375 --> 01:47:18,333
- and it so happened
- that more than a year prior
- 2136
- 01:47:18,417 --> 01:47:21,500
- it had lined up Elizabeth
- Holmes as one of the speakers.
- 2137
- 01:47:21,583 --> 01:47:24,834
- Could you get specific
- on the key points today...
- 2138
- 01:47:24,959 --> 01:47:27,250
- And not only did she come,
- she came swinging.
- 2139
- 01:47:27,333 --> 01:47:30,208
- The tests that are offered
- are of the highest quality.
- 2140
- 01:47:30,250 --> 01:47:33,709
- We know what we're doing,
- and we're very proud of it.
- 2141
- 01:47:33,792 --> 01:47:37,000
- Were there situations
- in which you, uh,
- 2142
- 01:47:37,125 --> 01:47:39,291
- had to dilute
- blood samples?
- 2143
- 01:47:39,375 --> 01:47:40,959
- What the Journal described
- 2144
- 01:47:41,000 --> 01:47:42,667
- that we take
- a sample, dilute it,
- 2145
- 01:47:42,792 --> 01:47:44,667
- and put it on
- a commercial analyzer
- 2146
- 01:47:44,792 --> 01:47:47,291
- is inaccurate,
- and that's not what we do.
- 2147
- 01:47:47,375 --> 01:47:49,101
- I watched it on the Journal website,
- 2148
- 01:47:49,125 --> 01:47:51,959
- and I couldn't believe
- what she just said.
- 2149
- 01:47:52,000 --> 01:47:55,083
- There was no question
- that that was a huge lie
- 2150
- 01:47:55,125 --> 01:47:56,875
- because they were
- absolutely doing it.
- 2151
- 01:47:56,959 --> 01:47:59,250
- We don't actually
- use the technology
- 2152
- 01:47:59,333 --> 01:48:01,875
- that's being referred
- to as Edison for anything,
- 2153
- 01:48:01,959 --> 01:48:04,250
- and haven't for
- a few years now.
- 2154
- 01:48:04,291 --> 01:48:08,583
- When we do fingerstick,
- every time, we use technology
- 2155
- 01:48:08,667 --> 01:48:10,959
- that is not
- commercially available.
- 2156
- 01:48:11,083 --> 01:48:12,583
- We have never used
- 2157
- 01:48:12,667 --> 01:48:15,083
- commercially available
- lab equipment
- 2158
- 01:48:15,125 --> 01:48:16,709
- for fingerstick-based tests.
- 2159
- 01:48:16,792 --> 01:48:18,542
- Every fingerstick test...
- 2160
- 01:48:18,625 --> 01:48:21,458
- I had underestimated her willingness
- 2161
- 01:48:21,542 --> 01:48:25,709
- to bald-face lie
- in public, on our turf.
- 2162
- 01:48:25,792 --> 01:48:28,291
- I guess what I really want
- to know is, do you feel now,
- 2163
- 01:48:28,375 --> 01:48:32,458
- in hindsight, that maybe you went
- market a little too quickly?
- 2164
- 01:48:32,542 --> 01:48:34,302
- Did you feel pressured
- to do that in any way?
- 2165
- 01:48:34,375 --> 01:48:36,250
- We're the exact same company.
- 2166
- 01:48:36,375 --> 01:48:37,959
- Nothing has changed.
- 2167
- 01:48:38,041 --> 01:48:40,834
- We're working every single day
- to try to get these tests
- 2168
- 01:48:40,917 --> 01:48:43,125
- and systems to meet
- the highest quality standards.
- 2169
- 01:48:55,542 --> 01:48:58,250
- Couple of months after
- John Carreyrou's article,
- 2170
- 01:48:58,291 --> 01:49:01,750
- I wrote a new story.
- 2171
- 01:49:01,834 --> 01:49:06,458
- It was both a correction
- and a mea culpa.
- 2172
- 01:49:06,542 --> 01:49:10,125
- And I said that Elizabeth
- had intentionally misled me.
- 2173
- 01:49:12,417 --> 01:49:14,500
- After I published the piece,
- 2174
- 01:49:14,583 --> 01:49:16,125
- Elizabeth called me,
- 2175
- 01:49:16,208 --> 01:49:19,750
- and there was
- a long conversation.
- 2176
- 01:49:19,834 --> 01:49:22,291
- She was not apologetic.
- She said,
- 2177
- 01:49:22,417 --> 01:49:25,250
- "I never would intentionally
- try to mislead you.
- 2178
- 01:49:25,291 --> 01:49:27,166
- Why would we do that?"
- 2179
- 01:49:27,250 --> 01:49:30,834
- She was trying to persuade
- me to take out that sentence.
- 2180
- 01:49:30,917 --> 01:49:32,250
- She said something like,
- 2181
- 01:49:32,291 --> 01:49:34,500
- "If you're not going to take
- that language out,
- 2182
- 01:49:34,583 --> 01:49:38,166
- we're going to have to do
- something about that language,"
- 2183
- 01:49:38,250 --> 01:49:39,667
- which was a little menacing,
- 2184
- 01:49:39,750 --> 01:49:43,959
- but all that they then did
- was they wrote a letter.
- 2185
- 01:49:44,041 --> 01:49:45,959
- Toward the end,
- there was a weird paragraph,
- 2186
- 01:49:46,041 --> 01:49:48,417
- something to the effect that
- Elizabeth didn't even realize
- 2187
- 01:49:48,500 --> 01:49:51,709
- that Fortune was doing
- a feature profile,
- 2188
- 01:49:51,792 --> 01:49:53,542
- let alone a cover.
- 2189
- 01:49:53,625 --> 01:49:55,750
- And it was so, such a...
- 2190
- 01:49:56,709 --> 01:49:59,291
- bizarre thing 'cause...
- 2191
- 01:50:00,458 --> 01:50:03,083
- I was out there four days and...
- 2192
- 01:50:03,583 --> 01:50:06,041
- I had called all these
- people at her behest.
- 2193
- 01:50:06,125 --> 01:50:07,583
- You know, seven directors,
- 2194
- 01:50:07,667 --> 01:50:10,542
- the head of UCSF Medical Center,
- 2195
- 01:50:10,625 --> 01:50:12,625
- the head of Blue Cross
- Blue Shield.
- 2196
- 01:50:12,709 --> 01:50:16,083
- I spent an hour and a half with
- her parents. I met her brother.
- 2197
- 01:50:16,166 --> 01:50:19,417
- I asked her about the letter
- she wrote when she was nine.
- 2198
- 01:50:19,500 --> 01:50:22,208
- I asked her about the book
- her father gave her
- 2199
- 01:50:22,291 --> 01:50:24,834
- when she went away
- to school, which was
- 2200
- 01:50:24,917 --> 01:50:27,250
- Meditations
- by Marcus Aurelius.
- 2201
- 01:50:27,333 --> 01:50:29,417
- And then there was
- the photo shoot!
- 2202
- 01:50:29,500 --> 01:50:31,375
- It was a big-name photographer,
- 2203
- 01:50:31,458 --> 01:50:34,500
- and his assistants,
- and the lighting equipment,
- 2204
- 01:50:34,583 --> 01:50:37,041
- and taking
- a couple hundred photos
- 2205
- 01:50:37,125 --> 01:50:40,250
- in different locations
- and different poses.
- 2206
- 01:50:40,333 --> 01:50:42,709
- That was a clue, you know?
- 2207
- 01:50:46,333 --> 01:50:49,333
- This was real lunacy.
- 2208
- 01:50:50,834 --> 01:50:53,291
- I realized that there was
- something wrong with her mind,
- 2209
- 01:50:53,375 --> 01:50:58,834
- that, um, you know, I don't know
- if she's lying or if she's...
- 2210
- 01:50:59,834 --> 01:51:03,583
- uh, there's an unconscious, um,
- 2211
- 01:51:03,667 --> 01:51:05,583
- reconstruct... self-protective,
- 2212
- 01:51:05,667 --> 01:51:08,041
- reconstruction of reality
- that's going on.
- 2213
- 01:51:08,125 --> 01:51:10,083
- But what is coming
- out of her mouth
- 2214
- 01:51:10,166 --> 01:51:12,750
- is not mapping onto reality
- 2215
- 01:51:12,834 --> 01:51:14,792
- as you or I know it, you know?
- 2216
- 01:51:20,917 --> 01:51:22,750
- I wish I could say to her,
- 2217
- 01:51:22,834 --> 01:51:24,559
- "Elizabeth, I'm going to give
- you a truth serum,
- 2218
- 01:51:24,583 --> 01:51:26,166
- "and you're going to tell me
- 2219
- 01:51:26,250 --> 01:51:29,709
- what was going through
- your mind at that time."
- 2220
- 01:51:30,208 --> 01:51:32,875
- And the question
- becomes, do you...
- 2221
- 01:51:32,959 --> 01:51:35,792
- do we believe
- that she would say,
- 2222
- 01:51:35,875 --> 01:51:38,000
- "I knowingly lied?"
- 2223
- 01:51:39,166 --> 01:51:41,458
- I have a hard time
- 2224
- 01:51:41,542 --> 01:51:43,333
- imagining her saying that.
- 2225
- 01:51:46,250 --> 01:51:49,625
- She was a zealot, and a zealot
- is such a believer,
- 2226
- 01:51:49,709 --> 01:51:51,959
- a true believer,
- in what they're doing
- 2227
- 01:51:52,041 --> 01:51:55,083
- that they're blind to the
- reality of what's happening.
- 2228
- 01:51:56,333 --> 01:51:58,583
- Not for a moment do I believe
- 2229
- 01:51:58,667 --> 01:52:02,291
- that she lies in bed
- at night and thinks,
- 2230
- 01:52:02,375 --> 01:52:06,083
- "I was a swindler.
- I was a crook. I lied."
- 2231
- 01:52:10,834 --> 01:52:15,000
- So one day, I get an e-mail from
- somebody who works with Elizabeth Holmes.
- 2232
- 01:52:15,083 --> 01:52:19,792
- He asked me if I would come and meet
- with their team and with Elizabeth.
- 2233
- 01:52:19,875 --> 01:52:21,625
- I said sure.
- 2234
- 01:52:21,709 --> 01:52:25,375
- Part of my research is actually
- about human motivation,
- 2235
- 01:52:25,458 --> 01:52:28,834
- and she was very concerned about
- the demotivation in the company.
- 2236
- 01:52:28,917 --> 01:52:32,458
- Right? Because
- the continuous stories
- 2237
- 01:52:32,542 --> 01:52:36,417
- around them were demotivating.
- 2238
- 01:52:36,500 --> 01:52:42,417
- My impression was that she truly
- believed in the mission of the company,
- 2239
- 01:52:42,500 --> 01:52:45,208
- and that she also
- believes that they are
- 2240
- 01:52:45,291 --> 01:52:48,583
- on the way to achieve something,
- 2241
- 01:52:48,667 --> 01:52:51,291
- and they just need the runway.
- 2242
- 01:52:54,625 --> 01:52:57,000
- There's a lot of lying
- in Silicon Valley.
- 2243
- 01:52:59,542 --> 01:53:02,583
- And I remember when my first
- book on dishonesty came out,
- 2244
- 01:53:02,667 --> 01:53:05,208
- and I did a book tour,
- and I gave a few talks
- 2245
- 01:53:05,291 --> 01:53:07,750
- in Silicon Valley,
- some entrepreneur said,
- 2246
- 01:53:07,834 --> 01:53:11,083
- "Oh, we are in technology.
- Technology doesn't lie."
- 2247
- 01:53:11,166 --> 01:53:13,059
- Right?
- So, and they basically said,
- 2248
- 01:53:13,083 --> 01:53:15,208
- "We are honest,
- there's no opportunities."
- 2249
- 01:53:15,291 --> 01:53:17,625
- And I didn't say anything,
- but in two minutes,
- 2250
- 01:53:17,709 --> 01:53:20,166
- all kind of people from
- the start-ups around him
- 2251
- 01:53:20,250 --> 01:53:23,792
- started talking about
- how they lie to investors.
- 2252
- 01:53:24,500 --> 01:53:27,000
- And they have all these graphs
- of growth, right?
- 2253
- 01:53:27,083 --> 01:53:28,917
- I mean, they're predicting
- the future,
- 2254
- 01:53:29,000 --> 01:53:31,250
- and they putting
- exact numbers on their...
- 2255
- 01:53:31,333 --> 01:53:35,041
- And my thought was
- that there is this idea
- 2256
- 01:53:35,125 --> 01:53:38,375
- in Silicon Valley,
- where you, um...
- 2257
- 01:53:38,458 --> 01:53:41,000
- in a very brave way,
- 2258
- 01:53:41,834 --> 01:53:45,792
- put a post somewhere really far
- 2259
- 01:53:45,875 --> 01:53:49,083
- that you truly have
- no idea if you can get there.
- 2260
- 01:53:49,166 --> 01:53:52,917
- And my sense from the
- discussion with Elizabeth was
- 2261
- 01:53:53,000 --> 01:53:55,917
- that she felt
- that she was basically
- 2262
- 01:53:56,000 --> 01:53:58,625
- doing the same thing
- that everybody else is doing.
- 2263
- 01:54:00,959 --> 01:54:02,685
- We have lots of people
- who are overconfident,
- 2264
- 01:54:02,709 --> 01:54:05,125
- and from time to time,
- some of them work out,
- 2265
- 01:54:05,208 --> 01:54:08,166
- and we get penicillin,
- or the incandescent light bulb,
- 2266
- 01:54:08,250 --> 01:54:11,333
- or we get...
- 2267
- 01:54:13,250 --> 01:54:15,291
- And if you are
- surrounded by companies
- 2268
- 01:54:15,375 --> 01:54:17,583
- who try very hard
- and dedicate their lives
- 2269
- 01:54:17,667 --> 01:54:20,875
- to achieve the impossible,
- 2270
- 01:54:20,959 --> 01:54:24,208
- and then sometimes they
- are successful in doing it,
- 2271
- 01:54:24,291 --> 01:54:26,208
- why can't you?
- 2272
- 01:54:29,041 --> 01:54:30,458
- At the highest level,
- 2273
- 01:54:30,542 --> 01:54:33,208
- we didn't have the right
- leadership in the laboratory,
- 2274
- 01:54:33,291 --> 01:54:35,083
- and I didn't realize
- 2275
- 01:54:35,166 --> 01:54:37,417
- until the inspection
- 2276
- 01:54:37,500 --> 01:54:39,542
- that these types
- of issues were in place.
- 2277
- 01:54:39,625 --> 01:54:41,792
- So, until
- the government told you
- 2278
- 01:54:41,875 --> 01:54:43,393
- that you were really
- out of compliance,
- 2279
- 01:54:43,417 --> 01:54:44,583
- - you didn't know?
- - Yeah.
- 2280
- 01:54:44,667 --> 01:54:46,417
- What was your reaction
- when you found out
- 2281
- 01:54:46,500 --> 01:54:47,834
- that you had all
- these violations
- 2282
- 01:54:47,917 --> 01:54:49,500
- - in your lab?
- - It was devastating.
- 2283
- 01:54:49,583 --> 01:54:51,542
- Don't blame anyone else.
- 2284
- 01:54:51,625 --> 01:54:54,065
- You have controlling shares in
- that company, Elizabeth Holmes.
- 2285
- 01:54:54,125 --> 01:54:55,458
- The buck stops there.
- 2286
- 01:54:55,542 --> 01:55:00,458
- People make mistakes,
- but you must always admit it.
- 2287
- 01:55:00,542 --> 01:55:01,875
- My husband's favorite phrase:
- 2288
- 01:55:01,959 --> 01:55:04,750
- "Excuses are like assholes.
- Everyone has one."
- 2289
- 01:55:04,834 --> 01:55:07,250
- Sorry. You don't have to put that in there.
- 2290
- 01:55:07,333 --> 01:55:09,333
- One of the headlines was,
- 2291
- 01:55:09,417 --> 01:55:11,667
- "$9 Billion Company
- Down to Zero."
- 2292
- 01:55:11,750 --> 01:55:13,583
- And your investors
- and your board members
- 2293
- 01:55:13,667 --> 01:55:15,208
- are reading those
- same things.
- 2294
- 01:55:15,291 --> 01:55:17,542
- It's probably the most
- important question, I think,
- 2295
- 01:55:17,625 --> 01:55:19,458
- anybody who's watching
- has about this.
- 2296
- 01:55:19,542 --> 01:55:21,875
- - Does it work?
- - Yes.
- 2297
- 01:55:21,959 --> 01:55:25,458
- - You're confident in that?
- - I am confident in that.
- 2298
- 01:55:25,542 --> 01:55:28,834
- Without further ado,
- I'd like to welcome Elizabeth Holmes,
- 2299
- 01:55:28,917 --> 01:55:31,917
- founder and CEO of Theranos, to the stage.
- 2300
- 01:55:32,000 --> 01:55:33,875
- Elizabeth did not give up.
- 2301
- 01:55:33,959 --> 01:55:36,000
- She fought back
- by taking center stage
- 2302
- 01:55:36,083 --> 01:55:39,709
- at a clinical lab conference
- in front of all her critics.
- 2303
- 01:55:39,792 --> 01:55:43,417
- She defiantly unveiled the machine
- she'd been hiding for so long.
- 2304
- 01:55:43,500 --> 01:55:46,375
- - The miniLab is designed...
- - She called it "miniLab,"
- 2305
- 01:55:46,458 --> 01:55:48,000
- as if it were a new invention.
- 2306
- 01:55:48,083 --> 01:55:50,291
- This is an inflection
- point for our company...
- 2307
- 01:55:50,375 --> 01:55:53,375
- But inside Theranos,
- it had another name.
- 2308
- 01:55:53,458 --> 01:55:55,667
- Edison 4.0.
- 2309
- 01:55:58,041 --> 01:56:00,500
- By 2017, Theranos had spent
- 2310
- 01:56:00,583 --> 01:56:03,875
- virtually all of
- the $900 million it had raised.
- 2311
- 01:56:03,959 --> 01:56:06,875
- Nearly 300 million
- went to pay legal fees,
- 2312
- 01:56:06,959 --> 01:56:08,750
- settle lawsuits from investors,
- 2313
- 01:56:08,834 --> 01:56:13,000
- and to refund every patient in
- Arizona for their blood tests.
- 2314
- 01:56:13,834 --> 01:56:15,667
- Henry Kissinger, George Shultz,
- 2315
- 01:56:15,750 --> 01:56:18,542
- and even David Boies
- resigned from the board.
- 2316
- 01:56:19,458 --> 01:56:21,291
- Elizabeth broke up with Sunny
- 2317
- 01:56:21,375 --> 01:56:23,125
- and fired him from the company.
- 2318
- 01:56:23,208 --> 01:56:27,000
- But she never lost her faith
- in the power of invention.
- 2319
- 01:56:29,041 --> 01:56:32,542
- It's finding...
- what you love,
- 2320
- 01:56:32,625 --> 01:56:34,458
- and finding what
- you're born to do,
- 2321
- 01:56:34,542 --> 01:56:37,125
- and when you find that,
- whether it's...
- 2322
- 01:56:37,208 --> 01:56:39,166
- you know, writing, or painting,
- 2323
- 01:56:39,250 --> 01:56:42,166
- or science, or whatever
- it is, when you...
- 2324
- 01:56:42,667 --> 01:56:44,375
- when you really
- 2325
- 01:56:44,458 --> 01:56:47,166
- give everything to that, then...
- 2326
- 01:56:48,208 --> 01:56:51,542
- then you can realize
- great things and...
- 2327
- 01:56:52,291 --> 01:56:54,291
- we'll fail 10,000 times
- if we have to,
- 2328
- 01:56:54,375 --> 01:56:58,583
- but we'll figure it out
- on the 10,0001st, you know.
- 2329
- 01:57:21,375 --> 01:57:24,041
- Ms. Holmes,
- please raise your right hand.
- 2330
- 01:57:24,125 --> 01:57:25,768
- Do you swear to tell
- the truth, the whole truth,
- 2331
- 01:57:25,792 --> 01:57:27,750
- - and nothing but the truth?
- - I do.
- 2332
- 01:57:39,041 --> 01:57:40,208
- ♪ You can't touch this ♪
- 2333
- 01:57:42,583 --> 01:57:43,750
- ♪ You can't touch this ♪
- 2334
- 01:57:46,083 --> 01:57:47,000
- ♪ You can't
- touch this ♪
- 2335
- 01:57:47,083 --> 01:57:49,625
- ♪ Oh, oh, oh, oh, oh, oh, oh ♪
- 2336
- 01:57:49,709 --> 01:57:50,625
- ♪ You can't
- touch this ♪
- 2337
- 01:57:50,709 --> 01:57:52,291
- ♪ Oh, oh, oh, oh, oh, oh, oh ♪
- 2338
- 01:57:52,375 --> 01:57:54,458
- ♪ My, my, my, my music ♪
- 2339
- 01:57:54,542 --> 01:57:55,667
- ♪ Keeps me so hard ♪
- 2340
- 01:57:55,750 --> 01:57:57,667
- ♪ Makes me say
- Oh my Lord ♪
- 2341
- 01:57:57,750 --> 01:57:59,125
- ♪ Thank you
- for blessing me ♪
- 2342
- 01:57:59,208 --> 01:58:01,000
- ♪ With a mind to rhyme
- and two hype feet ♪
- 2343
- 01:58:01,083 --> 01:58:02,875
- ♪ It feels good when
- you know you're down ♪
- 2344
- 01:58:02,959 --> 01:58:04,667
- ♪ A super dope homeboy
- from the Oaktown ♪
- 2345
- 01:58:04,750 --> 01:58:06,333
- ♪ And I'm known as such ♪
- 2346
- 01:58:06,417 --> 01:58:08,750
- ♪ And this is the beat
- you can't touch... ♪
- 2347
- 01:58:09,500 --> 01:58:11,166
- ♪ I told you,
- homeboy ♪
- 2348
- 01:58:11,291 --> 01:58:12,959
- ♪ You can't touch this ♪
- 2349
- 01:58:13,041 --> 01:58:14,792
- ♪ Yeah, that's how
- we living and you know ♪
- 2350
- 01:58:14,875 --> 01:58:16,792
- ♪ Can't
- touch this ♪
- 2351
- 01:58:16,875 --> 01:58:18,375
- ♪ Look in my eyes, man ♪
- 2352
- 01:58:18,458 --> 01:58:19,208
- ♪ You can't touch this ♪
- 2353
- 01:58:19,291 --> 01:58:20,709
- ♪ Oh, oh, oh, oh, oh, oh, oh ♪
- 2354
- 01:58:20,792 --> 01:58:22,851
- ♪ Yo, let me bust the funky
- lyrics, can't touch this ♪
- 2355
- 01:58:22,875 --> 01:58:24,542
- ♪ Fresh new kicks
- and pants ♪
- 2356
- 01:58:24,625 --> 01:58:26,559
- ♪ You got it like that now
- you know you wanna dance ♪
- 2357
- 01:58:26,583 --> 01:58:28,041
- ♪ So move out of your seat ♪
- 2358
- 01:58:28,125 --> 01:58:30,166
- ♪ And get a fly girl
- and catch this beat ♪
- 2359
- 01:58:30,250 --> 01:58:31,166
- ♪ While it's rollin' ♪
- 2360
- 01:58:31,250 --> 01:58:32,458
- ♪ Hold on pump a little bit ♪
- 2361
- 01:58:32,542 --> 01:58:35,166
- ♪ And let me know it's going on like that,
- like that ♪
- 2362
- 01:58:35,250 --> 01:58:36,917
- ♪ Cold on a mission
- so fall on back ♪
- 2363
- 01:58:37,000 --> 01:58:38,875
- ♪ Let 'em know that
- you're too much ♪
- 2364
- 01:58:38,959 --> 01:58:41,250
- ♪ And this is a beat
- they can't touch ♪
Advertisement
Add Comment
Please, Sign In to add comment
Advertisement