Canada’s largest pharmacy chain has struck a commercial partnership with San Diego-based Truvian Health, as the blood-testing firm gears up for clinical trials it needs to clinch regulatory approval in the U.S. and Canada. 

The deal, announced Wednesday, could help validate a business model shrouded in skepticism following the collapse of the fraudulent startup Theranos. It coincides with a US$74-million funding round co-led by Wittington Ventures, an investment firm affiliated with the holding company of Canada’s billionaire Weston family, which owns Shoppers Drug Mart and its parent company Loblaw. 

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Banishing the ghost of Theranos: Truvian is working on a system to quickly screen for a suite of conditions from a small blood sample that’s tested on-site without being sent to a lab. The proposition, including the printer-sized box that serves as its mini-lab, shares striking similarities with Theranos, the disgraced Silicon Valley blood-testing startup whose founder, Elizabeth Holmes, was convicted in 2022 for ​​fraud and conspiracy over false claims she made to investors. 

Truvian CEO Jay Srinivasan admits the scandal created challenges for his company. Heightened scrutiny has forced it to be more transparent with investors and regulators. That’s meant taking the covers off its device to let investors see it operating, letting independent clinicians test the lab, and communicating with the FDA well before applying for regulatory approval. 

Despite the extra caution, Srinivasan said there’s still interest in the model. “What Theranos indicated was there was a need,” he said. “That vision has not really lost its sheen at all.” 

The money: Much of the fresh US$74 million is earmarked for the expense of the clinical trials Truvian needs to seek regulatory approval from the U.S. Food and Drug Administration. The company will apply for Health Canada approval after filing in the U.S. San Francisco-based Great Point Ventures co-led the round with Toronto’s Wittington. Existing investors DNS Capital, Medical Excellence Capital, Tao Capital, TYH Capital and 7wireVentures also participated. 

The partnership: Shoppers did its own pilot testing on Truvian’s system last year, and found results from its platform were comparable to traditional central lab tests. “Truvian’s novel platform, combined with the convenience of accessing care in pharmacy, will be an amazing step forward in making care more accessible and convenient for patients,” Shoppers president Jeff Leger said in a press release Wednesday. 

Srinivasan said Truvian and Shoppers are actively working together, but he wouldn’t disclose details of the partnership. Those, he said, will be available in the coming months. Speaking in generalities, he said Truvian will work with partners to test its product before launching it for commercial use. 

Once it has regulatory approval, the pharmacy will be able to offer blood testing to customers on-site, with results available within 30 minutes, said Srinivasan. Other pharmacies, clinics and doctors’ offices will also be able to use Truvian’s system at that point.

From investment thesis to reality: The Shoppers partnership helps validate Wittington’s thesis of investing in sectors where Loblaw does business.

Wittington partner Megh Gupta said that while the VC firm doesn’t exclusively fund startups with direct use cases for Loblaw and its sister companies, it’s certainly a consideration. Some of Wittington’s portfolio companies have already entered into direct partnerships with Loblaw, including autonomous trucking company Gatik. Those deals offer glimpses into how the grocery chain is expanding its empire. 

Gupta said he knew there was potential for Shoppers to use Truvian’s testing when Wittington first invested in the startup in 2021, “but it wasn’t a prerequisite for why we invested,” he said. “We said, ‘this will be great if it happens, but even if it doesn’t, the company is a great investment.’” 

Correction: Truvian will file for Health Canada approval after filing in the U.S. This story has been updated.