DarioHealth Corp. (NASDAQ: DRIO)
New York and Israel-based DarioHealth Corp. (NASDAQ: DRIO) leads global digital therapeutics (DTx) with its popular, smartphone-centered personalized chronic illness management software-as-a-service (SaaS). The company's strategic advantages include:
- AI-powered digital solutions that drive durable behavior change in chronic disease patients, and
- Personalized user experience at scale to make behavior change the path of least resistance.
Approximately $3 trillion in annual U.S. costs associated with chronic illnesses like diabetes, hypertension and obesity are largely preventable with behavioral therapies. Formerly limited to periodic office visits, these therapies can now scale to millions with tech-enabled, continual and remote health monitoring, as well as AI-driven digital and live coaching. This is all possible while still maintaining the personalization required for success in reducing illness and its related effects and costs.
Roughly 51,000 active, paying users manage their health with Dario's platform that combines smartphone-connected vitals measurement, remote patient monitoring (RPM), lifestyle management tools, and AI-driven and human coaching to deliver improved clinical outcomes.
Among the most downloaded medical apps, the Dario platform is rated at 4.9 stars on the Apple App Store and features 11,000 reviews, along with a Net Promoter Score (a measurement of consumers' willingness to recommend the product to others) that's the highest in its field.
Clinical studies demonstrate Dario's direct improvement on users' health measures like H1AC scores (diabetes) and blood pressure (hypertension).
Patient engagement in therapies leads to health success. Dario's platform centers on continual maximization of patient engagement through personalization, including 'nudges' and live, AI-generated responses to health measures provided by Dario's smartphone-connected medical devices.
Proprietary data analysis provides valuable insights that not only improve health care providers' medical capabilities but, through artificial intelligence, encourage patients to take evidence-based and highly personalized preventative measures that reduce risk, emergency room visits and preventable hospitalization.
Dario is now deploying its successful B2C platform in B2B2C, targeting employers and health plans with competitive advantages in cost, software and hardware.
The company estimates an annual addressable U.S. market of $72 billion, only 1% of which has been penetrated with digital therapeutics.
The strategic transition to B2B2C (from exclusively B2B) is intended to accelerate revenue growth by reducing Dario's cost per acquisition per user and expanding margins.
Dario's commitment to aggressive growth is also shown by its appointment of a new president, chief medical officer and head of sales for North America, all from a highflyer behavioral health company.
Key growth drivers planned include expansion of the company's paying B2C subscriber base; lateral expansion into other chronic conditions that overlap with its core diabetes populations, such as hypertension, obesity and depression; and increased B2B2C penetration.
The company plans to leverage a massive opportunity for growth, with a global addressable market for digital therapeutics of roughly $108 billion. In the U.S. alone, that number is estimated at $72 billion, and only about 1% of that market has been penetrated.
Dario's strategic transition to an SaaS membership business model increased gross profit by 87% in Q1 2020, as compared to the prior year. Membership revenue increased from 27.1% to 46.7% in the same period. The company is seeing improved operating efficiencies as it shifts focus to the B2B2C business model, and it expects average revenue per user per month (ARPU), which was $6 and $25 in 2019 and 2020, respectively, to reach $70.
Value to Consumers and Businesses
Dario continually evaluates and optimizes the value and return its platform delivers to consumers and businesses.
Consumers seeking to understand how their everyday behavior impacts their personal health and chronic conditions benefit from actionable feedback on how to improve health and better collaborate with health care providers.
Businesses looking to increase employee satisfaction, loyalty and productivity with fewer health-related absences take advantage of Dario's services for employers.
Health care providers improve patient compliance using the platform's interactive services that allow for greater monitoring, which improve engagement with patients at the right times and with the right treatments.
Health plans can leverage DarioHealth's solutions to improve patient outcomes and lower costs.
The company recently presented the results of two new studies at the American Diabetes Association's 80th Scientific Sessions, which showed sustained improvements in blood glucose levels and blood pressure among users of its digital therapeutic platform for chronic diseases. The results of these two studies demonstrate that the use of Dario's therapeutic platform promotes behavioral modification, enhanced individual engagement and improved clinical outcomes.
Remote Patient Monitoring (RPM) Agreements
The Centers for Medicare & Medicaid Services recently approved RPM codes for Medicare patients, which enables physicians to bill for between-visit patient care.
This simplifies implementation of the company's open and scalable AI-driven platform and further supports transition to the company's high-margin, recurring SaaS model targeting B2B2C revenue channels.
Emergency COVID-19 FDA Guidelines Allow Self-Test Blood Glucose Meters
In an effort to preserve personal protective equipment (PPE) and reduce contact between health care providers and patients in hospital settings due to COVID-19, the U.S. Food and Drug Administration (FDA) has recognized that home-use blood glucose meters, including Dario's smartphone-connected metering device, may be used by patients with diabetes who are hospitalized due to COVID-19 to check their own blood glucose levels and provide the readings to the health care personnel caring for them.
As a result, hospitals can now allow patients to self-test using their Dario blood glucose testing strips and smartphone-connected devices, or hospitals can issue patients Dario devices upon admission for COVID-19-related conditions.
Irregularities in blood glucose levels are suspected as a factor in the increased severity of potentially deadly COVID-19 complications. As such, a high priority is being placed on stabilization of patients' blood glucose levels.
Awards and Recognition
DarioHealth's Blood Glucose Monitoring System was voted as the 'Best Glucometer for Data Management' by Top Ten Reviews. Jeph Preece, senior editor at Top Ten Reviews, said, "The Dario app is the best data management system that I've seen. Compared to apps by popular brands, Dario's system looks and feels like it's years ahead of the curve."
'The Global Digital Health 100', an annual award sponsored by the reputable Journal of Health, recognized DarioHealth as a leader among health technology companies demonstrating the greatest potential to change the way that health care is delivered.