Blood-testing start-up Theranos took a number of management missteps that led to its most recent tangle with health regulators, business school professors said Thursday on CNBC's "Power Lunch."
For several months, federal health regulators have raised concerns about the accuracy of the company's blood-testing technology. On Wednesday, The Wall Street Journal reported that the Centers for Medicare and Medicaid Services threatened to impose stiff sanctions on the company — including a ban that could prohibit Theranos CEO Elizabeth Holmes from owning or running a lab for at least two years.
In an interview with CNBC, Theranos spokesperson Brooke Buchanan stressed that the company is actively working to address issues raised by regulators.
"Elizabeth Holmes has not been banned from the industry, she hasn't been banned from Theranos and we continue to work hard to address all the concerns that have been raised by CMS," Buchanan said. "We're in constant communication with the regulators."