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Earlier today, FBI agents searched the offices of the ubiome, The medical test company that sells microbiome badyzes of an individual, the bacterium that lives in the gut, according to a report in the Wall Street Journal.
The FBI reportedly opened an investigation into UBiome's billing practices, the WSJ reported.
"I can confirm that special agents of the FBI San Francisco Division are present at 360 Langton Street in San Francisco and that they carry out law enforcement activities authorized by the courts. Due to the nature of the investigation, I can not provide any additional details at the moment, "confirmed an FBI spokesman.
360 Langton street is listed as an address for uBiome.
Many questions regarding the clinical validity and the effectiveness of the microbiome badysis remain, and uBiome could be under the microscope for the fact that it offers test kits ordered by the doctor and requested by the consumer.
"We cooperate fully with the federal authorities in this area. We look forward to continuing to meet the needs of healthcare providers and patients, "wrote a company spokesperson in an email to TechCrunch.
The company is part of a growing number of startups that are raising money for clinical and consumer applications in the nascent field of microbiome research.
Founded by Jessica Richman in 2012, uBiome grew from a crowdfunding start-up that raised $ 350,000 to start developing microbiome health tests for a $ 83 million company. last year.
UBiome being faced with potential legal problems with the federal government, other microbiome startups are also in trouble.
Earlier this week, Arivale, a company that used a combination of genetic testing and microbiomes and coaching to improve consumer health in the long run, was forced to close its "consumer program" after collecting more than 50 million dollars from investors including Maveron, Polaris Partners and ARCH Venture Partners.
"Unfortunately … we are ending our consumer program. Our decision to do so is due to the fact that the cost of providing the service exceeds what our customers can afford, "the company wrote on its website. "We believe that the costs of collecting the genetic, blood and microbiome badyzes that form the basis of the program will eventually drop to such an extent that the program can be delivered to consumers in a cost-effective manner. However, we can not continue to operate at a loss until this moment is over. "
Some UBiome customers have been able to avoid these costs by ensuring that the insurers pay the costs. What the government is likely to investigate is whether these insurance claims were fraudulent.
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