Episode 3 of The Dropout commences in June 2007, with Sunny halted in an airport for a seemingly "random" inspection as he prepares to acquire the newly released iPhone. Elizabeth Holmes, meanwhile, enjoys the privilege of a meeting with Ana Arriola, the brain behind the revolutionary device. Elizabeth artfully persuades Ana to leave Apple's ship and join Theranos, emphasizing the importance of outsiders banding together.
On a jogging outing with Lorraine, Elizabeth's mother, Noel, learns of a disturbing revelation about Richard. Lorraine inadvertently mentions that Richard has been delving into Theranos' secrets, intent on filing a patent for a blood testing device to rival theirs. Noel urgently warns Elizabeth of Richard's sinister plot to undermine her company, fueled by petty jealousy over Elizabeth's refusal to seek his advice. Unfazed, Elizabeth dismisses it as mere bluffing. However, the truth dawns on her when she discovers that Richard has indeed patented a home blood testing device, forcing her to purchase it from him.
Elizabeth cunningly avoids showing Ana and the Theranos board the flawed prototype. Board member Avie Tevanian senses a looming shadow, questioning the absence of the Novartis contract. Elizabeth smoothly deceives him, claiming that numerous pharmaceutical companies are expressing interest. She confidently assures him that they are conducting a trial with Pfizer on actual patients—a trial that Edmond and Rakesh deemed implausible without a functioning prototype.
In a hurry to meet Sunny for their date, Elizabeth joins him, her attention divided by her phone. When she mentions her intention to proceed with the Pfizer trial, Sunny is bewildered, questioning the ethics of testing a faulty device on people. Elizabeth brushes it off, saying, "Everybody does trials." She politely declines Sunny's offer to lend a hand at the office, fearing exposure of their relationship. She cannot afford even the slightest doubt in her perfect facade.
As the Pfizer trial commences in Nashville, Elizabeth and Edmond guide a terminally ill woman through the steps of blood testing using the profiler. In the midst of the demonstration, Edmond abruptly excuses himself for some fresh air, feeling the heaviness of deception. Elizabeth, however, remains steadfast, insisting that this is the way of the world.
Meanwhile, Sunny plays the role of a consultant, tricking Ian and taking a tour of the lab, peppering him with questions.
Meanwhile, Avie approached Don Lucas with grave concerns. He revealed that Theranos lacked both contracts and substantial data to substantiate Elizabeth's optimistic projections. Don, however, staunchly defended Elizabeth, urging Avie to resign from the board. Avie reluctantly agreed, but only if Don committed to asking more probing questions.
Upon returning from Nashville, Elizabeth stared intently at her reflection in the mirror. She muttered to herself repeatedly, almost as if trying to convince her own image that the patients were fully aware of the experimental nature of the treatment.
In the lab, the engineers whispered amongst themselves, wondering what Brendan Morris, Elizabeth's recent hire, was really up to. It transpired that he was developing a prototype vastly different from Elizabeth's original vision, a revelation that many saw as a betrayal.
Elizabeth, however, dismissed their concerns, insisting that she only wanted a machine that functioned, regardless of whether it adhered to her initial plans. Ian then carelessly mentioned a "consultant" named Sunny who had visited the lab.
When Elizabeth confronted Sunny, he remained unmoved. After closely examining her research, he realized that she was far from achieving her goals. Moreover, her employees clearly lacked respect for her. As she retreated to bed, Elizabeth repeated to herself, "This is an inspiring step forward," in a vain attempt to bolster her spirits.
A few months later, Elizabeth made the decision to move forward with Brendan's machine. She dismissed Edmond, who was promptly informed of his termination by Rakesh. Ana, who had met with Avie in secret, accused Elizabeth of proceeding with the Pfizer trial on terminally ill patients using a prototype she knew was flawed. Ana then resigned, along with her entire design team. This prompted Don to announce that he would initiate a vote of no confidence in Elizabeth as CEO.
The board voted overwhelmingly to oust Elizabeth, claiming that she "needed adult supervision." Undeterred, Elizabeth formulated a plan. She broke down in tears before the board, acknowledging that she indeed required oversight. That's why she proposed bringing in an "old friend" of hers, Sunny, as the Chief Operating Officer, while she remained as CEO. She revealed that Sunny had promised Theranos a significant investment of $20 million. She pleaded with Don to give her a second chance.
Her strategy seemingly succeeded, as she convinced Sunny to join her team after the fact. The episode concluded with Elizabeth primping herself to appear more befitting of a CEO, sipping a healthy green juice. She was embarking on a new journey, one where she hoped to turn over a new leaf.
