Introduction
In 2015, Walgreens made a bold move when they invested $140 million in the healthcare technology company Theranos. The investment was seen by many as a risky move, given that the company had come under scrutiny for its questionable medical testing practices. This article will explore how much money Walgreens invested in Theranos, what the potential benefits and drawbacks of this investment were, and if the investment was worth it in the long run.
How Much Was Invested?
According to a report from The Wall Street Journal, Walgreens invested $140 million in Theranos in 2015. This was part of a larger $350 million investment round that included other investors such as Rupert Murdoch and Oracle founder Larry Ellison. As part of the deal, Walgreens received a 10% stake in Theranos, making them the largest investor in the company.
The investment was seen by some as a risky move, as Theranos had recently come under scrutiny for its questionable medical testing practices. In addition, the company’s valuation had been slashed by over half since its peak in 2014. Despite these risks, Walgreens was willing to take a chance on the company due to their belief in the potential of the technology.
Impact of Walgreens’ Investment in Theranos
Walgreens’ investment in Theranos has had a significant impact on the healthcare technology market. By investing in the company, Walgreens has shown its commitment to embracing new technologies and investing in innovative companies. This has helped to legitimize the healthcare technology industry and has encouraged other businesses to invest in similar companies.
The investment also provided Theranos with the funds it needed to continue developing and refining its technology. This has allowed the company to make progress on its goal of providing low-cost, accurate blood tests, which could revolutionize the healthcare industry.
Evaluation of Walgreens’ Investment in Theranos
It is difficult to evaluate whether Walgreens’ investment in Theranos was worth it in the long run. On one hand, the investment has helped to legitimize the healthcare technology industry and has given Theranos the funds it needs to continue developing its technology. On the other hand, the company has struggled to deliver on its promises and has been plagued by scandal and controversy.
Ultimately, it is up to the individual to decide whether the investment was worth it. For some, the potential benefits outweigh the risks, while for others the risks are too great to justify the investment. Regardless of one’s opinion, it is clear that Walgreens’ investment in Theranos has had a significant impact on the healthcare technology market.
Conclusion
Walgreens’ investment in Theranos has had a major impact on the healthcare technology market. The company invested $140 million in the company, giving them a 10% stake and making them the largest investor in the company. The investment has helped to legitimize the industry and has provided Theranos with the funds it needs to develop its technology. However, it is difficult to evaluate whether the investment was worth it in the long run, as the company has struggled to deliver on its promises.
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