The Theranos company faces many obstacles to improve its value for investors. The company was found to have unsafe practices and that led to revoking its license to operate a lab in California. With a change in leadership and new practices, there is a better opportunity to improve the business.
No, the sanction will not increase Theranos' value, at least not right away. There will be a period of instability and flux during which the company may even experience turmoil. While banning the founder is very likely the right thing to do, it will take time before the company recovers and succeeds.
I do not think that the sanction imposed on Theranos by banning its founder will make the company's value increase. People do not like change. In fact it might be considered an act of betrayal that this has happened. After all, how can you ban the person who founded the company.
Theranos is currently in a very bad position. Bad for those who rely on it and bad for the company name itself. The idea for the company was once revolutionary, but now it's a cautionary tale. Companies like these must follow U.S. health regulations and abide by any federal requirements.