Bad Blood
John Carreyrou
Contributed by Andrea Barraza
Chapter 7

Since the Great Recession, Silicon Valley became a great target for investors because of the interest rate being close to zero, which prompted greater interest in getting higher returns in other places rather than the ones which were already known for these embattled venture capitalists. During this time, Elizabeth and Sunny started a project with a pharmaceutical company named Walgreens which was represented by Dr. J, who was a big fan of Theranos initiative, and Kevin Hunter, who vehemently opposed the deal. Hunter tried numerous times to stop the contract between Theranos and Walgreens by citing Theranos’ past reputation, opaque attitude towards cooperation, and its lack of concrete, peer-reviewed results for its technologies. Alarmingly, Sunny refused to show him the laboratories when they came for a visit and after they did an experimental testing with the device the results failed to arrive. Once he received evidence that proved that Edison, the above-mentioned device, was not working, people pushed him away and acted like his affirmations were false. Sunny and Elizabeth removed him from all the calls between Walgreens and Theranos. Meanwhile, they also managed to gain the trust of another company entitled Safeway who immediately invested in the Theranos because they thought their invention will become very famous in a short time.


This chapter marks the moment when big companies such as Safeway and Walgreens became interested in investing their money in Elizabeth's idea. Again, we can see that both Theranos executives were incredibly proficient at convincing people because they managed to win almost everyone on their side without actually proving that their device is working and without showing them any laboratories. They were smart enough to set several rules which had the role of keeping their secret safe. One of these rules was to prohibit opening the device. Breaking these rules would have led to the termination of the contracts. This chapter also introduces us to a Walgreen employer and would-be whistleblower named Kevin Hunter, who became aware that something is not right in reference to Theranos’ activities. He investigated the case and compiled evidence that proved that it was all a scam, but Elizabeth and Sunny already managed to get Walgreen on their side. Because of this information and Hunter’s vehement rejection, he was pushed away from the lucrative collaboration as a result of conflicting interests.

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