Elizabeth Holmes’s Push for Theranos Approval Drew Harsh Pfizer Response
Elizabeth Holmes’s Push for Theranos Approval Drew Harsh Pfizer Response
(Bloomberg) -- Theranos Inc. founder Elizabeth Holmes’s push to win backing from Pfizer Inc. backfired in her blood-testing startup’s early years, with scientists at the pharmaceutical giant concluding she was “evasive” and “deflective” on questions about her technology.
Pfizer’s internal report was so harsh that lawyers for Holmes say it would be unfair for jurors in her criminal fraud trial to hear about it.
The jury in San Jose, California, was previously told that Holmes, in order to attract investors, fabricated studies by Pfizer and Schering-Plough Corp. to claim the companies “comprehensively validated” Theranos analyzers. In fact, according to prosecutors, they rejected the technology.
But now the government wants to attack Holmes personally, her lawyer said Wednesday, with a 2008 report done by Shane Weber, a director of diagnostics at Pfizer who apparently wasn’t impressed with the young entrepreneur. The report isn’t yet public. Weber is expected to testify later in the day.
Weber’s report contains “a variety of pejorative comments about Holmes and Theranos,” and was never sent to the former Theranos CEO or the company, her lawyer, John Cline, told U.S. District Judge Edward Davila.
“It’s perfectly clear that Dr. Weber didn’t like Theranos technology,” Cline said, but the terminology describing Holmes is “so damaging in its tone.” Sharing it with the jury “seems profoundly unfair to me,” Cline said. If it’s admitted into evidence, “this is a document that’s going to be in front of the jury for deliberations.”
Weber’s report was based on material Holmes submitted to Pfizer, according to Cline. About a month later, in a phone call with her, Weber explained that based on his findings Pfizer wasn’t interested in Theranos machines.
Prosecutor Bob Leach argued to Davila there’s no reason to “sanitize” Weber’s findings or keep them from the jury.
“It’s a fraud case, your honor,” he said. Holmes made “sweeping claims” that Pfizer validated Theranos technology, he said. The report is “powerful evidence of the falsity of the defendant’s statements.”
Davila said he’ll decide before Weber testifies whether to allow the report into evidence.
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