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UBiome suspends testing after FBI raid

I received an email today notifying me that uBiome has suspended the sale of their SmartGut and SmartJane tests following an FBI raid on their San Francisco headquarters in late April. They continue to offer the Explorer test, which does not require a prescription. Their CEOs have been placed on administrative leave and major insurance companies are looking into their fishy billing practices. All pending SmartGut and SmartJane tests have been cancelled and this is the email they sent out:

On Friday, April 26, 2019, federal authorities, pursuant to a search warrant, searched uBiome's facilities in San Francisco. We are cooperating fully with federal authorities on this matter.

Our Board of Directors has appointed John Rakow, our General Counsel, as Interim CEO of uBiome, effective immediately.

Our Co-CEOs, Jessica Richman and Zac Apte, are currently on administrative leave as we conduct an independent investigation into the company's billing practices, to be overseen by a Special Committee of the Board. Once complete, we will take any corrective actions that are needed to ensure we can become a stronger company better able to serve patients and healthcare providers.

We will also be temporarily suspending clinical operations. At this time and until further notice, uBiome will not be offering SmartGut or SmartJane. We will continue to offer and process our Explorer product.

It is important to reiterate that this is a suspension. This does not mean we will not offer clinical products in the future, nor does this insinuate a lack of value or utility in our products. There is significant clinical evidence that demonstrates the utility and value of uBiome's products as important tools for patients, healthcare providers, and our commercial partners. We look forward to continuing to demonstrate this clinical utility and value.

Any SmartGut or SmartJane request or order that is pending on your account has been canceled. If you made any out of pocket payment upfront, this will be refunded to you within 3-5 business days. We will not be releasing clinical reports, processing samples, billing health insurance, or shipping new collections kits, at this time. If you would prefer that any of your pending samples be destroyed, simply reply to this email. Our team will ensure this is taken care of for you expeditiously.

Thank you for your interest in our clinical products and your support of our company. If you have any further questions or concerns, contact us at [email protected] or reply to this email.

The uBiome Team
For further information, here are links to news articles:

https://www.forbes.com/sites/alexknapp/2019/05/01/microbiome-startup-ubiome-cofounders-on-administrative-leave-after-reports-of-fbi-raid/#792c6e458291

https://www.mysanantonio.com/technology/businessinsider/article/A-microbiome-testing-company-that-has-raised-105-13823088.php

https://www.cnbc.com/2019/05/06/ubiome-suspends-clinical-operations-after-fbi-raid.html
 
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