This New York-Based Digital Therapeutics Company Looks To Disrupt a $475 Billion Market

As the global coronavirus pandemic forced people to keep their distance from one another, there has been an increase in the adoption of digital health solutions among healthcare professionals and individuals. 

While telehealth — the use of digital information and communication technologies to access healthcare services remotely — has been around for some time, the pandemic resulted in increased use of technology to manage healthcare.

The digital health products market is reportedly expected to reach $475 billion, rising at a compound annual growth rate of 26.5% through 2026.

As digital health has become more commonplace, players in the industry such as Humana Inc. HUM, Teledoc Health Inc. TDOC and DarioHealth Corp. DRIO are providing services to a growing market.

Strong Client Base

New York-based DarioHealth, a digital therapeutics (DTx) company, says its revenue is growing as a result of the multiple contracts it’s reaching with employers and providers. Its first-quarter revenue of $8.06 million is 124% higher than the same period a year ago. 

Over the past few months, the company announced a strategic agreement with Sanofi, three new contracts for its digital therapeutic solutions and a partnership with Solera Health for the treatment of hypertension.

DarioHealth’s multi-year, $30 million-dollar strategic agreement with Sanofi SNY announced in March will help accelerate commercial adoption of Dario's full suite of digital therapeutics and drive the expansion of digital health solutions on the Dario platform. The collaboration will significantly increase Dario's sales reach in the health plan market and selectively in the employer channel.

In May, DarioHealth announced two contracts to provide digital therapeutics to a national employer and a provider, both of which are expected to begin enrolling members in the third quarter. 

“Dario continues to build a strong client base across its suite of solutions as the market develops an appreciation for integrated and highly personalized digital health,” said Rick Anderson, DarioHealth’s President and General Manager for North America. “These new contracts are expected to add to our continuing revenue growth in 2022 and move us closer to our goal of contract additions in the current year.”

The company announced in June that it has a contract to deliver its digital behavioral health solution for a provider of integrated technology for financial professionals, also expected to launch in the third quarter.

DarioHealth says its enhanced employee assistance programs (EAPs) will improve access to a range of mental health services for its clients’ employees — its behavioral health solution is meant to offer employers a comprehensive platform that provides a seamless digital pathway from access to care.

“Demand for digital behavioral health solutions remains high, and we believe that Dario provides the integrated, seamless experience employers want in a cost-effective solution,” Anderson said. “Dario’s approach to digital behavioral health is proven to help people feel better fast, and we are excited to launch with this new employer next month.”

DarioHealth also reported partnering with Solera Health, a platform for connecting people with personalized health solutions, to offer a solution to treat hypertension that gives users access to a hyper-personalized experience that combines a Bluetooth or cellular-connected blood pressure monitor, a smart app that provides tracking, feedback and user-specific content and specially trained health coaches to provide one-on-one support.

DarioHealth launched in 2016 as a diabetes management app. It has since grown into a multi-condition platform that looks to help patients manage a wide range of chronic conditions, including hypertension, chronic pain, behavioral health, musculoskeletal health and weight management.

To learn more about DarioHealth, click here.

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