Despite its solid base, Theranos is under a lot of pressure to generate money and live up to its early expectations. Elizabeth, on the other hand, has some plans to expand her company and take it to the next level.
However, not everyone is pleased with her ambitions, and tensions at Theranos begin to rise. Here’s everything you need to know about ‘The Dropout‘ episode 4 if you’re looking for information on the episode’s events and conclusion!
WARNING: SPOILERS AHEAD!
Recap of Episode 4 of The Dropout
‘Old White Men,’ the fourth episode, picks up after Sunny Balwani is hired as the company’s COO. Sunny provides a financial boost to Theranos, but the funds are soon depleting.
As a result, Elizabeth resolves to look for other sources of income. She plans to have her device housed at Walgreens, one of the largest drugstore chains in the United States.
Elizabeth charms Dr. Jay Rosan, the Medical Director at Walgreens, in order to attain this goal. Rosan admires Holmes and the work she does at Theranos.
As a result, he forwards her proposal to Wade Miquelon, Walgreens’ Executive Vice President and Chief Financial Officer.
Wade is first sceptical of the premise that a system that can perform several blood tests from a single drop of blood is commercially viable. Rosan, on the other hand, persuades Wade that Theranos has made a breakthrough in the blood testing business that has the potential to transform the game forever.
Wade is intrigued to form early cooperation with Theranos and sends Kevin Hunter to inspect the firm and its labs, despite the fact that Theranos has yet to receive the required FDA licences.
Meanwhile, Ian Gibbons grows tired of Theranos’ secrecy and seeks to figure out what Elizabeth has been up to. He tries to communicate with Sunny but is unable to do so.
Gibbons obtains the pitch deck for the Walgreens sale and is concerned when he learns that Elizabeth intends to use the defective gadget to examine actual patients. He discusses the problem with Channing Robertson, a personal friend, and board member.
Robertson, on the other hand, notifies Elizabeth about Gibbons and is fired. Gibbons is quickly rehired, although in a different job, after some pushback from his coworkers.
Elizabeth chats with Wade, Hunter, and Rosan about the potential Walgreens-Theranos partnership. She, on the other hand, refuses to let Hunter inspect Theranos’ laboratories.
Hunter is hesitant to proceed with the acquisition without first thoroughly validating Theranos’ claims. Just as the agreement appears to be slipping away from Theranos’ grasp, Elizabeth steps in to save the company’s short-term financial future.
The Dropout Episode 4 Ending Explained
Elizabeth appears to be at the mercy of Walgreens in the closing section of the episode. The corporation will not conduct any business with Theranos until it has completed adequate regulatory inspections on its labs.
Under the pretence of protecting the company’s secrets, Elizabeth, on the other hand, denies them the opportunity.
In actuality, Elizabeth understands that the technology isn’t yet ready for commercialization. In a desperate attempt to get the company through the pre-revenue stage, Elizabeth partners with Walgreens.
Elizabeth, on the other hand, isn’t only after Walgreens. She’s also in talks with Safeway, a grocery store chain, and CVS, a pharmaceutical firm. Elizabeth is tying up Safeway and Walgreens representatives and taking advantage of the situation.
Finally, Elizabeth takes a risky step and refuses to budge from her position. Elizabeth declines both Walgreens and Safeway and instead travels to CVS to negotiate a bargain. She makes certain that the Walgreens employees are aware of her actions.
Wade and the others leave Theranos, but Rosan persuades Wade that Theranos and Elizabeth are trustworthy. Walgreens is up against Amazon and needs to make a strong move in the market immediately if they want to maintain their market share.
In this scenario, Theranos collaborating with a competitor would spell disaster for Walgreens. As a result, Walgreens extends an offer to Theranos, and the two businesses decide to collaborate.
Both Walgreens and Theranos have a lot riding on this deal in the short run. Theranos and Walgreens celebrate their new relationship at the end of the episode.