Walgreens Boots Alliance Inc. threatens to end its partnership with Theranos, a new report says. The issue comes after the latter was subjected to a surge of patient safety controversies.

Warning Letter

On Jan. 28, Walgreens released a letter to Theranos, giving a 30-day deadline for the blood testing firm to solve the violations it has made against the U.S. government rules governing clinical laboratories.

Theranos Law-Breaking Issues

The U.S. Centers for Medicare & Medicaid Services (CMS) said that the Theranos' Newark, California laboratory poses "immediate jeopardy to patients' health and safety." The description was made after the agency performed an on-site survey in the said lab.

Aside from lack of compliance from the set guidelines for certification, Theranos was also found to have deficient practices that may pose threats to safety.

Main Source Of Revenue

Theranos and Walgreens initially planned to provide blood testing services to consumers. Walgreens has put up 40 Theranos "wellness centers" in some of its more than 8,000 stores across the U.S.

Theranos' partnership with Walgreens is said to be its main source of revenue as it serves as its channels to consumers.

Burdens Pile Up For Theranos

Cutting ties with Walgreens will be a sure burden on the part of Theranos. If the partnership gets cancelled, Theranos would have to find a new retail partner to provide access to its consumers.

Another option is for Theranos to take its products to doctors' clinics, but this means it has to go up against bigger laboratory firms such as Laboratory Corp. of America Holdings and Quest Diagnostics Inc.

Theranos is also currently facing a deadline to submit the necessary documents required by the CMS in relation to the results of the on-site investigations in the Newark lab.

"The deadline has been extended once, and additional extensions are possible," the report says.

Although more extensions may be given, it may have to face sanctions from the CMS already if the company fails to comply by late March.

Both spokespersons from Walgreens and Theranos have not made official statements yet.

Photo: Mike Mozart | Flickr

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