This Digital Healthcare Company Is Reporting Multiple New Contracts That It Hopes Might Take It To New Levels

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The year may have kicked off with a bang for digital therapeutics company DarioHealth Corp. DRIO.

The New York-based company reports that it has already signed nine new contracts and is on track to reach its goal of more than 100 business-to-business accounts by the end of the year. 

“Dario continues to attract new employer business across our multi-condition suite thanks to our ability to provide a superior use experience that translates into meaningful value for our partners whether they select some or all of the conditions we offer,” DarioHealthPresident and General Manager Rick Anderson said at the time the last two deals were announced.

Dario also partnered with Sanofi S.A. SNY to expand its global digital therapeutics (DTx) platform. The $30 million agreement is meant to accelerate the commercial adoption of Dario’s full suite of digital therapeutics and drive the expansion of digital health solutions on the DarioHealth platform.

DarioHealth is expected to benefit from Sanofi’s U.S. sales and marketing efforts, which will expand its commercial reach in the health plan channel.

DarioHealth also raised $40 million from institutional investors, including insurance companies in Israel and existing shareholders. The company plans to use the proceeds from the financing to accelerate the commercial uptake of its multi-condition digital health platform in the U.S., for the development of new or enhanced solutions and general corporate purposes.

A Banner Year?

The new contracts come after a year that saw DarioHealth’s revenue rise 171% from $7.6 million in 2020 to $20.5 million last year. The company increased the number of accounts to 54 across the health plan, employer and provider market segments to create a book of business worth $35 million. 

“The last year completely transformed Dario’s company profile as our business-to-business (B2B) business grew significantly, both in terms of signed and launched, revenue-generating accounts and the overall growth of opportunity attributed to our integrated, multi-condition approach,” DarioHealth CEO Erez Raphael said. 

“The strategic shift to expand our suite of solutions through acquisitions, coupled with our ability to quickly integrate capabilities and launch new products, created a leadership position for Dario in the digital therapeutics market, helping accelerate B2B sales and deliver strong revenue growth.”

Dario also reportedly achieved a 40% member enrollment rate with retention of more than 80%.

This banner year for the company also led to some favorable analyst coverage with Stifel Financial saying in a March 2022 report, “We calculate our $21 target price by applying a 15x multiple to our 2023 revenue estimate. In addition to general market and macroeconomic impacts, risks include, among other things, competition, new bookings and pricing.” Another analyst report from Craig-Hallum Capital Group, stated the following about Dario Health, “Remain Buy rated, lowering price target to $18 (was $22) on higher cash burn and lower comp valuations.”

DarioHealth states that it offers comprehensive digital therapeutics covering multiple conditions, including diabetes, hypertension, weight management, musculoskeletal and behavioral health with one integrated technology platform. 

The company’s platform is made to provide personalized experiences that drive behavior change through evidence-based interventions, digital tools and coaching to help people improve health and sustain meaningful outcomes. 

Dario’s competitors include Teladoc Health Inc. TDOC, Livongo Health Inc. LVGO and Humana Inc. HUM.

To learn more about Dario, check out the company’s website. 

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Photo by National Cancer Institute on Unsplash