Encore: Theranos | Startup | 1
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Hi, this is linsey gram, host of american scandal. Our back call ague has moved behind a payland. Recent episodes remain free, but older ones will require a wone plus subscription with wondering plus you get access to the full american, have add free, plus early access to new seasons and more join wondering plus in the wondering APP or on apple podcasts. A listener note, this episode originally aired in two thousand twenty one.

It's two thousand and fourteen and halloween night in palo alto, california. Alan bean weaved through a crush of bodies at a die bar. The room smells like spilled beer and sweat and all around being people in costumes down their drinks and shout over the music.

It's a surreal evening. Beam is surrounded by superheroes and skeletons. A which shoots pool with a storm trip.

Everyone seems happy and care free, except beam. Beam is the laboratory director for Serenas, a health technology company and one of silicon valley hottest startups. Beams, responsibility, lit.

E, S, at work are endless and so were the hours. And while he's dressed like a zombie for halloween, he feels like one two. But it's not just the crushing deadlines and intense pressure being recently learned a devastating secret.

And if IT gets out, he and many people he works with could be ruined. So tonight, beam isn't in the mood to laugh and talk with adults dressed as vampire. He needs to put in just a few minutes chatting with co workers and then get home across the bar.

A Young man dressed as a mad scientist waves at beam and biting him over to his table. IT takes a second, but being realized that it's curtis snyder, a friend from theirs and one of the smartest st. People being nose so being approaches the table, trying his best to fake smile.

Hey, critics, nice costume. costume. No, I dressed as myself.

overwork. R, N, D, scientist. Man, I hear that probably heading home soon.

In fact, I was down. Don't be one of those old guys always clock out at six. You end up in a graveyard like yahoo.

IBM. Come, sit down. We're got a lot to catch up on beam sets down as on us.

No curis, it's late. I'll see you tomorrow that wait, you heard the news right now. What news? No one ever tells me anything.

Well, I guess i'm the one braking to you. Apparently, the fda has issues with our blood tested, are considering holding back approval. You weren't aware of this theme. Wipes is up her lip and looks away. The truth is, he knows exactly what neither is talking about.

There are no is developing what promises to be revolutionary medical technology the company has called the attention of the entire world, and its founder, eliza homes, is now a billionaire. Things couldn't appear to be any Better, but there is a hitch. Their nose needs approval from the U.

S. Food and drug administration. And the dirty secret, that being has discovered, is that the technology doesn't work, but beam isn't ready to share that hard news with this cover.

Fda has summit es, uh, no, no, I mean, I heard rumors how and you run the lab, you're telling me elisabeth doesn't feel you in. Let you know how he is her code of silence ah yeah and he knows how to keep a secret bit, but I don't get IT. We have a partnership with long Greens.

We are acing our proficiency test. why? What is the fg seeing? No man who knows, but want to think about that.

What are you watching on TV these days and stop? How is going on? nothing.

I mean, is the government, you know, the government times. Allen, look at you. Your hand is shaking. Man up.

I'm just tired because there is something you're not telling me, because I think I have a right to. Know, this affects me too. Now let let's just leave me alone.

Okay, being, wipe the sweat from for her, because i'm sorry if has been a long week, yeah, it's cool. All good. I'm sure everything can be fine.

Go home. Being gives a curt nod, but he knows that tinder isn't right. Things haven't been fine for a long time now, being used to believe in theirs, but his hopes have vanished there.

Eros is faulty technology could soon see a wide public distribution. And if that happens, medical patients could get the wrong diagnosis and treatments. People could die. It's a catastrophe py waiting to happen.

So being down the last of his warm beer and gets ready to make a confession, it's time to come clean to snyder, his co workers and the rest of the world. American scandal sponsored by auto val. I've bet you heard that IT takes ten thousand hours of practice to become an expert, right? Who came up with that now? glad.

Well, in his work tipping point, it's an idea that becomes something of an existing and brought criticism to glad well for oversimplifying complex social concepts. So what does he do? He writes a snarky follow up, revenge of the tipping point over stories, super spread ers and the rise of social engineering.

Too bad the audible title itself is in ten thousand hours long, because there's more to imagine when you listen. As an auto member, you choose one title amount to keep from the entire candle. New members can try out table free for thirty days, visit auto documents, flash A S or text A S to five hundred, five hundred.

American scandal sponsored by t mobile five g home internet with new home internet plus from team mobile, you can get internet right where you want IT, so you can boost your connection to places that hasn't reached before and transform your home, turn your backyard into a movie theater, turn your basement and do home office for a limited time. Free upgrade to team mobile home internet plus while supplies last, home internet plus starts at just fifty box a month with auto pay and any voice line check availability at team. Will dom flash home internet and get internet right where you want? IT during customers on this plan may notice speeds lower than other customers and further reduction of using greater than one point two terribles per months due to data priority. After twenty dollar bill credit plus five dollars per month without the bank account required. Rory, these included for qualifying accounts, thirty five dollar connection charge applies.

From wandering, i'm lizy gram and this is american scan.

The tech industry is a force in the global economy. Companies like apple, microsoft and google generate billions and profits, and they've disrupted long establish industries for manufacturing to education, to food delivery. But silly icon valley has also had a large influence on our culture.

The smart phone has come to dominate our eyes and ears. Many workplaces have adopted the open floor plans that are common in the tech industry, and luma areas like Steve jobs have given us a powerful cultural the genius who dare to dream big and change the world. Elizabeth homes aim to be this kind of visionary terrorism.

C and confident homes found at theirs. As a medical startup, he promised cutting edge devices that could run test for hundreds of medical conditions using only a single drop of blood. Investors were dazzled by her vision, and seemingly overnight, homes have become a self made billionaire and an icon in the tech industry.

But behind closed doors, homes was scrambling to hide the shocking secret her company arrested on a foundation of lies. And when this truth came to light, IT would shock the world and expose a darker side of silicon. Bali, this is episode one.

Start up. It's nineteen ninety five in houston, texas. The air hot and humid and a scrunch blown six greater named eliza's homes is running on a dirt t track.

Homes is strange and sweet. She's huffing and wishing, pushing herself to keep going to fight through even if she's ready to give up. Holmes is running in her school's track meat, but she's in last place, in far behind the rest of the pack.

This is one feeling SHE can't stand homes as a straight a student. She's accustom to being the best, especially in science and her Mandan classes. But being a good student doesn't make her popular.

If he wants to stay, SHE has to excel at something people actually care about, like trying field. So holmes grit her teeth and keeps pushing herself as sweat continues to pour down the back of her neck. But as he runs a whistle blow somewhere far off for a moment, homes is confused.

But then SHE realizes what's happened. The announcers have called the race. They must think all the runners have crossed the finish line up ahead.

The audience begins to scanner, even though homes are still out on the track, but the NASA calls out and tells everyone to wait. There is still one runner who needs to finish. Homes feels every head turned in her direction, and then SHE hears IT jeering.

People in the stands are laughing at her, yelling out that he should give up and go home. Home's face is red with humiliation. SHE wanted some attention to be something more than just bookish, but this wasn't the attention he was looking for.

To look like a fool. Home starts to panic, trying to figure out what to do. And then from the corner of her eye, SHE spots her friend Megan long, running over long, matches her pace, jogging beside homes.

SHE lays a hand on home's ARM, begging her to step off the track to call a quit home, sees pity and her friend's eyes, and IT fills her with even more shame. This is the worst feeling in the world, looking like a loser, a failure in front of everyone. Hot tears burst from home's eyes, but SHE swallow down the embarrassment and continues running down the track.

The finish line is just ahead. IT would be easy to stop now and preserve some measure of dignity, but something in homes won't let her give up. Lunching her jaws homes runs faster and leaving her friend behind, the wind blows across her face.

A moment later, SHE crosses the finish line, yellow streamer already severed and flapping in the lazy win as SHE stands, catching her breath, holmes realizes her ploy for distinction in sports was a failure. But there are other ways she's going to find something else, something bigger than all of this. And you'll never forget this feeling. You'll never come .

in last place again.

Seven years later, Elizabeth homes is now eighteen years old, a freshman at stanford university, where he studies biotechnology. But tonight she's back home in houston, texas, celebrating Christmas and her parents house for day. She's been eager for this moment because SHE is something important to announce a major life decision.

Holmes lays down her fork and knife and planes around the table. Hey, hey, everyone, everyone, stop. I, something I want to share.

Holmes, his brother, mother and father, turned to her. SHE feels a jot of nervous excitement. So i've been thinking about things, and I made a decision.

I'm going to drop out. Home's father is down his fork. Drop out, drop out of what a club on campus? No, no, dad, not a club.

Stanford, dropping out of school. This what you talking about? Why would you drop out?

Stanford was your dream? No, I was your dream. My dream is to become a .

billionaire. Is, how are you .

going to do that without a college degree? Bill gates, Michael down, Steve jobs, they all dropped down, and all of them founded their companies before they were thirty. And I can fall behind.

I can't sit around some college and waste my time. I've gotta get building homes. Father stands up from the tail and grants a eto paper from somewhere in the kitchen.

He draw something down. Then he faulted into a paper airplane and tosses IT across the table. IT hits homes in the shoulder, open IT homes, shakes her head, exasperated, but unfolds the paper airplane.

And inside there are only three letters, P, H, D, that I don't want a PHD. I mean, look at those. Our families founded the since ani general hospital and the flashman use company.

Being an entrepreneur is in my DNA is my father and my grandfather. They had more money than they knew what to do with spending most of IT on cars and homes, but none of them made them happy. Look, I spent my entire career working in war torn countries that dad I to need to.

Speech is not a speech. Happiness doesn't come from money or possessions and comes from purpose. Having a meaningful life, if you want to make a splash, that's fine, but don't do if for profit, do IT do IT to improve the world homes crosses her arms and looks away. But when he looks back at her father SHE, not elisabeth.

that's our legacy.

That's what's in your DNA not, I think, an entrepreneurship changing .

the same world.

Now let me .

down homes of voice for .

father's gays. She's not ready to admitted, but he might have a point. Still, SHE won't bunch on her intentions.

At some point holmes will drop out of stanford. Some opportunity will present itself and she'll be ready for. And when IT does, maybe there's a way he can make a name for herself and improve the world.

It's the summer of two thousand three in a medical laboratory in singapore. The vast basis cold in, silent in nineteen year old Elizabeth homes hovers over industrial lab bench. She's wearing a White coat and protective gargles.

And from a plastic rack, SHE removes a sample of blood homes, turns to a computer and longs data about the sample. Then SHE drops the tube into a centric, huge, where is fun? And the blood plate lets separates from the plasma.

And then he prepares to do the same thing again. One sample after another, first logged, then span. And then again and again, it's repetitive work.

Part of her summer internship at the genome institute of singapore at this lab, she's testing blood samples from patients who've been infected with the s virus. When holmes accepted the position, SHE believed he would be doing important work. The SARS outbreak was big, a global event. But now that she's here in singapore, homes can help a feel discouraged lab. Ork is boring SHE wish if he could be doing something else.

something more exciting. Homes turns .

you wing into the sleep of her lab coat. That's when he sees her supervisor moving down the rose, checking in on the lab tax. She's a tiny, severe woman with a black bob.

And SHE seems to have very little time for the interns, but holmes wants to impress. Maybe if SHE proves that she's Better than the other interns, SHE can do something that's a little more creative and less monotonous. When her supervisor reaches her homes, tells her that she's been thinking about these blood samples.

IT took a lot of work to collect them. All the needles and tubes. IT seems needlessly painful. And then there's the testing. It's laborious, not to mention inefficient.

Holmes takes a deep breath and says he wonders if there aren't other methods to collect and test blood samples. Maybe if SHE and supervisor work together, they could find a Better way home smiles waiting for the supervisors praise. She's hoping that she's proved she's not a pass of in turn, but that she's here to contribute, but her supervisor just shakes her head, annoyed.

SHE says there is no Better way. This work that homes is doing is the gold standard and the homes is going to work in the field. She's Better get used to IT.

The supervisor turns on her heels and walks away. Homes, a shock to be so rebuked. SHE looks around for some kind of moral support, but the other interns just keep their eyes down.

Homes grumbles as he returns to her work. It's clear that this industry has no vision. There's got to be a Better way to do this.

If SHE could invent that meant he wouldn't just improve the lives of countless interns like herself, that would be much bigger than that. Poems could change the entire medical industry. SHE could be famous and rich and live a meeting for life, home smiles.

And he launched the next blood sample. SHE won't be in this lam forever. As soon as she's back in the united states, she's going to start developing the next great idea in silicon valley. American scandal sponsored by dell technologies who invite you to shot their black friday event for their lowest Prices of the year. The future is on sale today with limited time deals on select pcs like the X P S sixteen that accelerate I with intel core ultra processors.

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It's the fall of two thousand and three in palo to california. Chanock roy hangs up his lab coat and pulls on a loose blazer. He gLances around his small, messy office, which is cluttered with dog yearbooks and stacks of paper.

It's not exactly the kind of place where you'd Normally hold a business meeting, but business looks a lot different here in silicon value. Roy is A P. H.

D student at stanford. He researches biochemical reactions, but soon hill finish his graduate studies and head out into the world to start a full time job. He knows he should probably find something safe and stable.

IT would make his parents happy. There are both immigrants, and he was raised with the values of hard work and being practical. Still, roy can't ignore a quiet voice inside him in whisper every time he looks online and sees a listing for another Normal and boring job.

Roy want something more, something exciting, something visionary, maybe something here in silicon valley and one of the tech companies. And that's why in a few minutes, he and his academic advisor going to sit down with one of his lab assistance. Her name is Elizabeth homes.

And apparently, SHE has an innovative idea for a starter. SHE wants roy to be part of the business. Outside his office, roy hears muffled voices approaching.

Then there's a knock on the door. And when he opens IT, he finds home standing side by side with his advisor. Home's blond hair looks free.

Zy and mad like he just went up from a nap. Eyes are ring with dark circles. SHE clearly has not been sleeping well still as homes and the adviser entered the office.

It's cleaner that her energy is anything but flagging. Her eyes wide with passion homes tells roy that he's about to have a life changing meeting. Roy grins drawn in by her magnetic Christmas.

Working in the lab together, he never seemed like he was the next mark sucker berg or Steve jobs. He was always hard working and curious, but so is every other software. Is stanford still?

Holmes managed to talk her away into a graduate level chemical engineering class as well as a research of printing ship and royal adviser is over the moon about holme's business idea. So while roy isn't easily dazzled, he's also not so close minded if there is something to homes this idea that could be the perfect launch pad for his own career. Roy takes the heat across from homes and says he's ready for the pitch homes launches into IT started with her internship in singapore.

SHE worked with blood samples there, but the labor was repetitive and the technology badly outdated. SHE knew there had to be a Better way to test people's blood for diseases and other health conditions. So when holmes return to the states, SHE got right to work.

He slept only maybe one or two hours every night, spent the rest of the time developing what could be a game changing piece of technology is something that she's calling the therapy atch homes, reaches into her backpack and takes out a stable set of documents, which SHE hands over to roy. This, he says, as her pant for the therapy atch IT works by applying a small and deese ve patch to a patient skin. The patch painlessly draws up a small amount of blood, and with an embedded microchip, IT allies es the blood in real time.

Then the patch injects any necessary drugs into the patient and provides diagnostics to a patients. Doctor royce studies the sketches of the patch with its series of tiny needles. The whole thing sounds like science fiction, but he's intrade.

And once in a more so, roy asked holmes what conditions the patch could treat, how would IT diagnose lenses and how was something so small actually deliver medicine one by one, holm's answers the questions, speaking with a fire passion. And while her responses are still rough, roy has to give up to her. Elizabeth homes is inspiring, and she's right.

The blood testing industry is right for disruption. The right approach, something simple, something modern and efficient, could revolutionize the entire medical industry. Royal looks up from the pattern files and finds holmes beaming with a smile.

SHE says she's really enjoyed working with him in the lab. Roy is remarkably talented, and that's why he wants him to be part of her business. SHE needs a skilled researcher to set up a lab and begin work on the thera patch prototype.

Roy pauses as he malls over the offer. This is exactly the kind of opportunity that is dreamed up at the same time. That's a risky idea.

He could spend years of his life working on a silly passion project, something that might go nowhere while his fellow grand students build their careers at real companies. But roy can't ignore the voice that's always whispered in his year. He was meant to do something bigger and different, and this could be the chance of a lifetime.

Roy smiles and nods. He's in to together, roy. And homes will create a piece of technology that could change the world along way that you grow very rich.

About ten months later, eliza's home stepped into a glass world conference room in northern california. SHE opens her laptop and begins reviewing her powerpoint slides, page after page of diagrams, figures and images by itself, holmes is patterned, means nothing. SHE had to create a business, find office and lab space higher employee.

And to do that, he needs some real money. So this powerpoint presentation is the cultivation of all the hard work that SHE and shook roy have done in the last few months ever sense SHE drop out of stanford. The presentation all leads to a single argument, the technology is too revolutionary, the potential too big.

IT would be crazy not to invest in her start of a company. She's now calling fairness. A door opens down the hallway and holmes glasses up and sees a woman with round, colorful glasses and a blond bomb.

Homes takes a deep breath, a net. Cambell White might look like someone is sweet and caring mother, but SHE is one of the most powerful people in silicon valley. She's a venture capitalist and makes massive investment in medical startups.

And while homes has already raised some money through family connections, SHE needs deeper pockets in order to build a successful company. Cambell White has that kind of money, but cambell White is a famously shut investor. And if she's going to sink millions into serenus, homes is going to have to impress her.

The conference room door swings open and cambell wide approaches with an outstretched homes. I've heard a lot about you, I hope, mostly good things. Valley knows how to spot real talent. I'm curiously hear about this new device are working on.

Well, I know you see a lot of tech and i'm sure you get a lot of good pitches, but I have no doubt you're going to remember this moment for the rest year. Life confidence. Oh, I like IT.

Let's get to IT why you walk me through your pitch homes gathers herself as SHE launches her powerpoint. She's practice the speech of thousand times and those every word by heart. Well, let's go back because even though it's unconventional, you have to understand something about my childhood when I was Young.

More than anything, I hate IT getting my blood rain. Genetics are funny. You know, my mother, he has a terrible fear of needles.

If SHE even sees us, her in SHE just fails. And I guess I inherited that phobia. And for some, like me, IT does really make life hard going to the doctors, all the needles.

But i'm not the only one. There are millions of people who can't stand to get their blood done. And all that made me wonder, what if there was a Better way? Homes turns and clicks over to the next slide in her presentation.

This is the therapy. Ch, it's an adhesive patches that, and this is key, painlessly draws blood from a patient and then makes a diagnosis for a wide number of medical conditions after that, indirectly administers any necessary drugs. I'm sorry, this patch draws blood tests that diagnosis the disease and then medicaid, the patient.

exactly. Now I don't have to explain to you. I'm sure you can see the way this transforms medicine.

Not only that, he would change patients lives, homes, takes a sip water, please, with her delivery. So far, SHE notices that cambell White is running. This is an adorable goalless hones.

But I I don't understand how would a microchip, liver medicine and communicate with your doctor? Everything would be wireless house directly inside the patch? No, I gathered that.

But wireless communication requires a set of components completely different from diagnostic components. And then the transdermal medication, a whole, whole new set that's a lot attack to cram into a tinch patch. That's true.

And I like the idea of getting test results from a patch, but there's already another company that's cornered the market on that sort of product. What's the differentiator? How is the anos Better? Holmes feels her face grow.

Hunt, no, i'm sorry. I think you're missing the point. This holmes, I listened to every word of your presentation leve in your deck.

I very rally with the point. This is ground breaking technology. yeah. And theory that may be true, but you haven't explain how IT actually works.

Does IT work homes tries to study herself self, but he feels her face flush again, and then the words come pouring out of her. Mth, you know, a net. I thought you'd be the right partner for my business.

I thought you were someone who had vision, but clearly I was wrong, so good luck with everything. Home stands up and leave the office as SHE acts the building and walked through the parking lot, homes, arms and legs start shaking. SHE can't believe what just happened.

He was supposed to walk away with an offer for millions of dollars. Instead, SHE was made to sound like a child, someone who wasn't ready for the real world. IT was a humiliating experience, but holmes won't be stopped by a small minded adventure capitalist.

This meeting was just a setback, but I taught her an important lesson. SHE needs to find investors who understand her vision and who won't get bogged down by details. If you can find those people, SHE should have no trouble getting all the money he needs. Building theron OS into .

an empire about a year later, shock roy makes .

his way through a recently expanded office in palo to california as he walked through the White open space. Roy marvel that all the employees buttling about the past eighteen months have been a willing but eliza homes has managed to raise six million dollars in venture capital. That's not only allow them to open this office, which belonging to their us, but they were able to hire an entire staff and build out a professional lab.

Roy looks around and shakes his head and happy disbelieve. IT feels like only yesterday that the two of them were running a Young startup with their backs against the wall. But everything seems to have changed overnight, and that includes homes herself.

As roy turns a corner in the new office.

he sees his, their nose cofer, standing in front of yet to another group of investors. She's wearing a black turtle neck and Taylor red slacks, looking just like her hero Steve jobs. SHE is also begun Carrying herself with a swag of a legendary C.

E. O. So while threose may not yet be famous, that hasn't stopped homes from taking on the role of dynamic you and hatching ambitious plans.

SHE wants to license their product to pharmaceutical companies conducting drug trials. Homes has promised that their devices will offer real time data showing the companies whether the patients are having adverse reactions to the drugs. IT could be a game changer for the trillion dollar pharmacy al industry, but roy worries about delivering on their promises, especially on homes.

Tight timing IT helps that they've scrap the original thera patch idea, and instead of developing a hand held machine still, holmes refuses to listen when roy shares his concerns. That's why he's on his way to the thern OS lab. He needs to get someone else this point of view to see whether his worries are justified.

Roy steps inside the lab, increases one of the technicians who lifted protective goggles and smiles a hush tone role, inquires whether they're made any progress on the latest prototype. Right away, the technician smile fades. Looking across the gleaming lab equipment, the technician tells roy that they are still facing some fundamental struggles like separating out the constituencies of blood samples.

The mechanics are proving incredibly hard. Rain nods and asked the lab tech to be straight with them. Does he believe the product is feasible? The technician freezes for a mom, unsure what to say.

Roy knows that no one wants to be the barrel of bad news, especially in a company with such large ambitions. But then the lab text miles again, he tells roy that maybe don't get lucky. And gesturing to the decorations dangling throughout the office, he tells roy, maybe they'll be a Christmas miracle and that time of year.

And the technician puts his goggles back on and returns to war. His heart sinks as he turns and exits the last. He told him himself he wanted to hear the truth, even if IT made him uncomfortable and if he's being honest with himself.

What roy really wanted to hear was that they were on track, that everything would be all right. Because if that we're true, if their nose was actually getting closer to a available for a and royal can rest easy knowing that he made the right choice getting involved in this started as things stand now roy is ensure what the future. And increasingly, IT seems like he's made a big mistake.

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It's two thousand six in palo alto, california, and late at night. By now, most of the employees at there no have gone home for the evening, but not a list with homes. Their nosis founder and CEO is still at the company office getting ready for an important meeting.

Holmes knows it's unusual to do business to slate, but some things can't wait. Holmes just bought a two million dollar of packaging system design to ship there. No is blood testing product as soon as it's ready, but the product is still far from done.

There always seems to be some kind of delay that's left theano s in crisis mode. They've already blown through their first six million dollars in funding homes, has put on a good performance and managed to raise another nine million dollars. But she's worried that IT won't last long, and if theos runs out of money, it'll be seen as one of the biggest embarrassments in silicon valley. So it's time to put some pressure on one of their nosis top employees.

Homes walked through the office and approaches a man with slumped shoulder. His name is emd and he's the head of engineering for their eros. Oh, this is, i'm sorry, i'm here so late and i've lost track of time.

That seems like a habit of you is not sorry, I know, and i'll stand. This won't take on, okay, but look, I wanted apologize. Expect something, and it's time to stop.

apologize. Now tell me what I want to hear. okay.

I want to apologize. I'll be honest. My team is still struggling with the prototype. I know you've had some problems about this, but if we could trust if we just use more blood in the samples, you could change everything.

Product, we have a much Better chance of working if we weren't using so little blind. And I made myself clear, no more blood. Now you're an engineer and you fix technical problems, and that's what I hired you for.

No more blood. I see year of this company. I've made promises to my investors.

I said we could create a device that fits in the palm of your hand and that works with just one drop of blood. I understand. So you also understand how important IT is to keep that promise.

Yes, yes, I do. But add, if we don't build this product, some other company will and I won't let you be the reason why we fail. Cool freezes stone, there's i'm doing the best I can, but issues keeps stacking up using so little blood cross contamination, nothing is impossible.

But I need to speak to the guys in chemistry. Maybe we can stall this together. No, that's another thing i've made perfectly clear.

You and every other employee are only allowed to speak with your direct teams. But we could solve this problem. We were able to talk together.

You can also lead company secrets. There is no, no, no. We're done here. No more delays make this work. Cop dips his head and nodded before walking away.

When he's gone, holmes takes a deep breath and tries to figure out her next steps. Kow wasn't wrong. The departments would work Better if they could team up and collaborate.

But holmes wasn't wrong either. In silicon valley, people talk, and if sensitive details about serenus were to go public, they could lose their advantage, yet beaten to market by someone else. So holmes made a final decision. SHE will be the only person who will see the full picture of their eros. And no matter what he has to do, hire people, fire people, raise millions more from venture capitalists, somehow threose will .

succeed.

Later in two thousand and six, there are as chief financial officer. Henry mostly heads through the company office. Under his ARM is a notebook, and inside as a set of records that paints a troubling picture, mostly as a number's guy.

And for the last eight months, he's overseen every aspect of the reno s's financial Operations, and that includes projected revenues. Once serono s begin selling its blood testing technology, the company is currently valued at one hundred and sixty five million dollars. It's a strong valuation, but the problem is mostly believes the numbers are inflated. It's a worry that grown especially strong after he learned troubling mostly needs to speak with Elizabeth homes to share his worries if he is the visionary leader that everyone thinks he is mostly .

a certain sh'll do the right thing .

when mostly reaches homes as office, the C. E. O smiles and invitation in SHE tells mostly that is time to celebrate.

SHE was recently in switzerland meeting with no. Artis, the swiss pharma udal giant IT. Turns out the company is interested in working with air ness.

Mostly song is hard. The mention of this meeting, that's exactly what he wanted to talk about. So he's steps forward and tells homes that from what he heard, the meeting didn't go so well.

Apparently there was something wrong with the demonstration of the reno sis technology home smiles and waves her hand dismissively. SHE tells mostly that that was just a minor issue, nothing to be concerned about, but mostly presses the issue, telling homes that IT didn't sound minor just this morning. There are noses, costs or chanock.

Roy admitted that during the meeting, their devices started. Now the team resorted to a work around. They showed prerecorded test results.

IT made IT look like the technology was doing what he was supposed to do. But IT was a fake presentation. Homes taps her desk, her smile growing icy, and explains that everything is fine.

Their technology will work just as promised. He was just a tacti C2Buy tim e. Mostly can't believe what he's hearing.

Sounds like the devices are still far from Operational. And if the companies lying to their investors, they're committing fraud. Homes rises from her desk, menacing look in her eyes now.

And he tells mostly that he's clearly not a team player. He should leave. He doesn't belong with theirs for a moment.

Mostly stands staring and confusion. Then the truth, he said he was just fire, mostly begins to leave the office. But before he steps out, IT takes one last look at homes.

When he first met her, her, he was careless. Matic, a brilliant dreamer who could change the world at her, now mostly can see that that all Elizabeth is gone. Maybe he was never there in the first place.

It's november two thousand and seven in palo to california. There are nose cofounder shook, roy exits the company, breakroom and trudges past a group of employees working silently in their cubicles. They look weary and beaten down, and roy can't blame them.

In recent months, in the atmosphere at the office has grown increasingly oppressive. Word has gotten now that eliza homes is now suing three former employees, claiming they stole the company's intellectual property. SHE somehow even got the FBI involved, but her paranoia didn't end there.

IT seems that every day, homes institute some new security protocol, or reminds employees that if they slip up, they could be sued. But in public homes continues to sell her grand vision for thermos behind closed doors, the company is under lockdown. I can go on like this, things i've gotten out of control, and roy is determined to make some changes.

No more secrets, no more impossible promises to investors, or have truths. This culture of fear has to end. So roy hands toward homes, his office, ready to have a word with her.

But as he rounds a corner, he can hear she's already with someone. Muffled voices rise and fall. Royce slows to a stop as their glass wall office comes into view.

Behind her desk, holmes was flagged by a group of people, including her lawyer. And across from them sits a man with dark care whose head is hanging wall. It's roy's friend and colleague, edmond cou, the head of engineering at their nus.

Roy's heart starts to pound as he looks into the room. It's obvious what's happening. Crew is being fired. A moment later, the door swings open and crew exits. He looks defeated and drained, unsure where to go or what to do next.

Roy doesn't know what to do either, so he lays a hand on his friend shoulder, suddenly cool, looks up his face, bitter and angry. He tells roy that he's heart broken. IT wasn't supposed to be this way.

They were supposed to be changing the world. Q for us, his eyebrows and tells roy that he is a smart man, too smart to keep working with homes, roy, or to leave. Otherwise stereos and eliza homes will ruin him.

Roy searches for a response, but he doesn't have one. And soon, who turns the heads for the exit, royce stands alone in the hallway. Several years ago, he took a risk.

His former lab, a system, a teenage underground, convinced him to abandon a safe career to join a startup. IT had been so exhilarating at the time, but now roy feels nothing but regret. This may have been the biggest mistake of his life.

He helped create a toxic company as burning through money and may never accomplish anything. This whole thing could turn out to be an incredible waste of time and money. Part of roy still wishes he could change the company to force a new arrow, transparency and openness to stop leading money and firing talented employees.

Sonos could still be something special. But deep in his heart, roy knows the truth there. Ono's is unfixed ble. You can only try to leave efforts too late. Next on american sane, Elizabeth homes enters res into a high profile partnership, one that increases the pressure at the but doubt about the company continue to grow from wondering. This is episode one, atheros for american.

If you're enjoying american scandal, you can unlock exclusive seasons on one free plus bonne new seasons first, and listen completely and free when you join wander plus in the wander APP apple podcast or 4 tivy。 And before you go, tell us about yourself by filling out a survey and won dot com slash survey. A quick note about our reign tons.

In most cases, we can't know exactly what we said, but all our dramatizations are based on historical research. And while many of the people involved in this story have gone on record, some have only been willing to speak under the protection of sudan, if you'd like to learn more about there is we recommend the book bad blood secrets and lies in a silicon valley started by john Carrier. American scandal is hosted, edited and executive produce by meat Linda gram for air ship audio editing by Molly box sound designed by direct parent. This episode is written by a Samantha shaw, edited by Crystal a moser. Our senior producer is gave ribbon execute producers are steffani e genes, janua beckman and her non Lopez for wonder.

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