Theranos 2.0? Billy Evans’ Haemanthus Faces Skepticism in Diagnostics Race

The shadow of Theranos looms large over the biotech industry, and now a new startup, Haemanthus, founded by Elizabeth Holmes’ partner Billy Evans, is seeking to carve its own path in diagnostics. But with Holmes still serving time for fraud, the venture faces an uphill battle to prove its legitimacy. Let’s dissect the risks, opportunities, and why investors are hesitating.

A Familiar Name, A New Venture

Billy Evans, heir to the Evans Hotels fortune and MIT graduate, launched Haemanthus in 2023 with a focus on Raman spectroscopy, a light-based technology for analyzing bodily fluids like blood and saliva. The goal: rapid, low-cost diagnostics for conditions like ALS and certain cancers. The startup has raised roughly $20 million, mostly from friends and family, but prominent investors like James Breyer—once a Theranos backer—have declined to participate, citing unresolved ethical concerns.

The Technology: Legitimate or Theranos 2.0?

Haemanthus’ core innovation lies in Raman spectroscopy, a well-established scientific method that uses laser light to identify molecular structures. Unlike Theranos’ debunked microfluidics, this technology has real-world applications in fields like forensics and material science. A January 2024 patent describes a device capable of analyzing blood and other fluids, with aspirations to create a wearable diagnostic tool.

However, critics argue the startup’s strategy mirrors Theranos’ playbook:
- Veterinary Market First: Haemanthus is targeting pet diagnostics before human applications, a move to avoid FDA scrutiny. This parallels Theranos’ reliance on lab partnerships to bypass regulatory hurdles.
- Stealth Mode: The company operates under wraps, with minimal public disclosures. Its website features generic placeholder text, raising red flags about operational readiness.

Funding and Skepticism: A Double-Edged Sword

While Evans has secured initial funding, the lack of institutional investors is telling. High-profile rejections from firms like those affiliated with Michael Dell highlight lingering distrust. “The question isn’t whether the technology works—it’s whether the team can execute without repeating past mistakes,” one venture capitalist told The New York Times.

Regulatory and Reputational Risks

The FDA’s strict oversight of human diagnostics poses a major hurdle. Haemanthus’ pivot to pets avoids immediate regulatory battles but offers no guarantee of future approval. Meanwhile, Holmes’ advisory role—despite her SEC-imposed ban from public company roles—fuels skepticism. “The brand damage from Theranos is still fresh,” says a regulatory expert. “Investors won’t forgive a second act.”

The Holmes Factor

Holmes, serving an 11-year sentence for fraud, claims to be drafting patents from prison. Her “advisory” role, while technically compliant with her SEC restrictions, raises ethical questions. “She’s the elephant in the room,” says a former Theranos employee. “Even if the tech is solid, the association with her past will haunt this company.”

Conclusion: Can Haemanthus Break the Cycle?

The verdict hinges on two factors: technical validation and transparency. Raman spectroscopy has scientific merit, but Haemanthus must prove its devices work in real-world settings—not just labs. Transparency about clinical trials and partnerships will be critical to rebuilding trust.

While Haemanthus’ $20 million runway buys time, the startup’s valuation hinges on scaling beyond pets and navigating FDA approvals—a path littered with Theranos’ failures. Until then, investors are right to be wary. As one analyst quipped, “In diagnostics, reputation is the most expensive thing to build—and the cheapest to lose.” For now, Haemanthus remains a gamble in a market still haunted by its founders’ past.