Jim Cramer on Theranos Inefficacy Claims: There Are More Questions Than Answers

Drug diagnostic company Theranos is under intense scrutiny, following a report in The Wall Street Journal, raising questions about the effectiveness of its finger prick blood tests. ‘It is a fluid situation,’ said TheStreet’s Jim Cramer. ‘The Wall Street Journal made a major takeout against the company.’ The Palo Alto, Calif.-based company offers 240 blood tests. The Journal article included comments from ex-employees of Theranos. The company is reportedly worth $9 billion and boasts over $400 million in funding. Theranos CEO Elizabeth Holmes made an appearance on CNBC’s ‘Mad Money’ following the Journal’s article and told Cramer she was ‘shocked.’ ‘This is what happens when you work to change things,’ Holmes told Cramer. ‘First they think you’re crazy, then they fight you and all of a sudden you change the world.’ She said the company sent the Journal over 1,000 documents ‘demonstrating that the statements in the Journal’s piece were false.’ ‘I think what Elizabeth is about is democratizing the system,’ Cramer said. ‘Getting you in control of it and what the Wall Street Journal is saying is that maybe the stuff doesn’t work that well.’