Tarred By Association
Blood testing company, Theranos, is under investigation by the Federal Government for making false claims for its products. This is proving to be a PR disaster for Walgreens, the drug store chain that was using and promoting Theranos devices. The question is when Walgreens will formally break with Theranos to stop being tarred by association. Observers have wondered since the beginning of the Theranos saga months ago why Walgreens persists in its alliance with the company and its faulty droplet testing product. Granted that the drug store chain stopped opening wellness centers that use Theranos products but it has proceeded cautiously on any final break with Theranos. That means it is hurt by every negative story that comes about Theranos, and Walgreens reputation is ruined along with its vendor. Few believe that Walgreens is contractually bound to Theranos. There are clauses in nearly all agreements for breaking a relationship due to the criminal behavior of one or the other parties. Maybe the full story will come out in the months ahead, but until then Walgreens is in a perilous position.
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