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Theranos Trial: Scientist Testifies Elizabeth Holmes Knew in 2011 of Blood Device Shortcomings

SAN JOSE (CBS SF) -- A new witness in the Theranos trial said Wednesday she put Elizabeth Holmes on notice that the company's blood analyzers didn't stack up to competitor's machines.

Dr. Victoria Sung was a scientist with Celgene in 2011 when that company was developing a new drug to treat anemia and kidney disease. Celgene was interested in Theranos to test how its medication was working on patients because it promised to be faster, easier, and required very little blood.

But in head-to-head tests with other "gold standard" devices, Celgene found Theranos results were off, which made it unsafe to use on patients.

On the witness stand, Sung said Celgene notified Holmes in emails and a Power Point before canceling the deal.

"So many witnesses provide small pieces that come together to create an entire picture," said Santa Clara Law Professor Ellen Kreitzberg, who sat in on the trial Wednesday.

Earlier Wednesday, defense attorney Lance Wade cross-examined ex-Theranos lab director Dr. Adam Rosendorff for the second straight day, getting Rosendorff to concede that in 2014, many validation tests on the Theranos device were successful and Rosendorff signed off on the results.

He again drove the point that as Lab Director, Rosendorff was responsible for fixing any problems with the machines.

"The defense is clearly trying to show that Elizabeth Holmes either didn't know about these problems or if she knew, she took whatever steps or delegated it to another person to take the steps," Kreitzberg said.

Dr. Rosendorff will have to return to the witness stand on Friday for further cross-examination by the defense.

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