Lab-Testing Startup uBiome Files For Bankruptcy (wsj.com) 5
An anonymous reader quotes a report from The Wall Street Journal: Embattled lab-testing startup uBiome Inc. filed for bankruptcy protection Wednesday and put its assets up for sale after suspending testing of its clinical products. The San Francisco-based company filed for chapter 11 protection in U.S. Bankruptcy Court in Wilmington, Del., and said it has lined up an $8 million bankruptcy loan to keep its business open while it looks for a buyer. The company, which is under federal investigation for its billing practices, laid off around half of its global workforce in July.
UBiome had been trying to build a business on testing patients' microbiomes based on emerging science that suggests microorganisms in the gut and other parts of the body can play a role in health. The startup had raised $83 million in a financing round from investors that included 8VC and Y Combinator. But the company has suspended the two lab tests for which it was billing insurance companies. Some of the companies had already largely or completely stopped paying claims. UBiome co-founders Jessica Richman and Zac Apte, who were earlier suspended from their positions as co-chief executives, resigned from the company's board. In June, the board appointed Curtis Solsvig of restructuring firm Goldin Associates as acting CEO.
UBiome had been trying to build a business on testing patients' microbiomes based on emerging science that suggests microorganisms in the gut and other parts of the body can play a role in health. The startup had raised $83 million in a financing round from investors that included 8VC and Y Combinator. But the company has suspended the two lab tests for which it was billing insurance companies. Some of the companies had already largely or completely stopped paying claims. UBiome co-founders Jessica Richman and Zac Apte, who were earlier suspended from their positions as co-chief executives, resigned from the company's board. In June, the board appointed Curtis Solsvig of restructuring firm Goldin Associates as acting CEO.
*Lowers voice* how's Elizabeth doing by the way? (Score:2)
Still enjoying her freedom or proudfully serving time alread?
Re: (Score:2)
Thank Goodness. The speech I hate the most has an outlet. My faith in humanity's flawed, inherent tendency towards inclusiveness, is restored.
"emerging science" (Score:5, Insightful)
"Emerging science" is another term for "crackpot ideas used to attract stupid VC money".
Re: (Score:2)
I mean, with a business model like "hoodwink investors to hoodwink insurance companies", how could it not be successful?