U.S federal health regulators have proposed banning Theranos Inc. founder Elizabeth Holmes from the blood-testing business for at least two years after determining that the company failed to fix certain problems at its California laboratory, the Wall Street Journal reported.
The Centers for Medicare and Medicaid (CMS), in its letter dated March 18, said it planned to revoke the lab's federal license and prohibit Holmes and Theranos's president, Sunny Balwani, from owning other labs for at least two years, the WSJ said on Wednesday.
The CMS gave Theranos about 10 days to provide adequate evidence of why the sanctions should not be imposed, after which it would proceed with imposing the sanctions, the Journal reported, citing people familiar with the matter.
A Theranos spokeswoman told Reuters that the CMS had not imposed any sanctions on the company as yet.
The CMS in January has said that deficient practices at a the Theranos lab posed an "immediate jeopardy to patient health and safety."
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