The new contract significantly expands Dario's footprint with more than a million eligible members beginning January 2025
NEW YORK, Oct. 1, 2024 /PRNewswire/ -- DarioHealth Corp. (Nasdaq: DRIO) ("Dario" or the "Company"), a leader in the global digital health market, announced today a new contract with a national Medicare Advantage health plan (the "Plan") to launch its behavioral health solution for the Plan members beginning in January 2025.
This new contract marks the beginning of a strategic relationship, starting with Dario's behavioral health solution, Twill by Dario, in 2025 and potentially expanding to additional Dario solutions in 2026 and beyond. The multi-million-dollar contract is expected to be a significant contributor to the annual recurring revenue (ARR) growth in Dario's Business-to-Business-to-Consumer (B2B2C) channel in 2025. This is the fourth national health plan that Dario has contracted with, bringing the total to seven health plans overall and marking the first national health plan contract in the Medicare Advantage market.
The Plan selected Dario to offer a single solution to support healthy aging by addressing broad emotional health and well-being with integrated capabilities to address the Social Determinants of Health (SDoH). Dario's AI-based network navigation will provide the ability to integrate support across community resources and help direct members to the right health plan benefits, optimizing support for a wide variety of needs related to SDoH. Older individuals engaging with Dario's digital Cognitive Behavioral Therapy (CBT) programs will enjoy a tailored experience designed for seniors to support healthy aging and drive improved behavioral health outcomes.
Emotional health is a crucial aspect of the overall health of seniors. In addition to existing mental health disorders, many seniors experience mental health needs arising from changing life circumstances, such as the loss of a loved one or serious illness and may require support that extends beyond traditional mental health care. Dario's behavioral health solution is proven to effectively engage seniors and improve mental health with evidence-based programs and emotional health and well-being support that includes healthcare professionals, curated content, and peer-to-peer communities.
"There is a misconception that seniors will not engage with digital health, but our data tells us that is just a myth. Pre-Twill, the senior population on the Dario's platform was roughly 30%, a number that will expand with this partnership. The high comorbidity rate between metabolic and mental health conditions is something that Dario is prepared to address upon expansion of this partnership down the road. Seniors will engage with solutions that are tailored and relevant to their unique needs, and we've proven this across behavioral health and chronic health needs," said Steven Nelson, Chief Commercial Officer at Dario. "We are excited about the momentum of our B2B2C core channel to health plans and employers. The addition of another national health plan to our client base provides significant opportunity for revenue expansion and allows us to implement our newly refined enrollment and engagement technologies into a wider population of members. We believe that our comprehensive product offering not only helps secure more revenue from new clients but also generates additional revenues from existing clients by exposing them to additional products or larger populations. The B2B2C channel is contributing more than 70% of our revenues as of the first quarter of 2024, and we expect it to continue growing as a result of such contracts."
About DarioHealth Corp.
DarioHealth Corp. (Nasdaq: DRIO) is a leading digital health company revolutionizing how people with chronic conditions manage their health through a user-centric, multi-chronic condition digital therapeutics platform. Dario's platform and suite of solutions deliver personalized and dynamic interventions driven by data analytics and one-on-one coaching for diabetes, hypertension, weight management, musculoskeletal pain, and behavioral health.
Dario's user-centric platform offers continuous and customized care for people's health, disrupting the traditional episodic approach to healthcare. This approach empowers people to holistically adapt their lifestyles for sustainable behavior change, driving exceptional user satisfaction, retention, and results, making the right thing to do the easy thing to do.
Dario provides its highly user-rated solutions globally to health plans and other payers, self-insured employers, providers of care, and consumers. To learn more about Dario and its digital health solutions, or for more information, visit http://dariohealth.com.
Cautionary Note Regarding Forward-Looking Statements
This news release and the statements of representatives and partners of DarioHealth Corp. related thereto contain or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not statements of historical fact may be deemed to be forward-looking statements. For example, the Company is using forward-looking statements in this press release when it discusses the expected timing of the contract launch, the potential for the expansion of the contract with the Plan and expected implementation timelines, the duration and value of the collaboration, the potential increase in ARR in Dario's B2B2C channel in 2025, Dario's AI-based network abilities and efficiency, future engagement of the senior population on the Dario's platform, and the benefits of Dario's platform and products. Without limiting the generality of the foregoing, words such as "plan," "project," "potential," "seek," "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate" or "continue" are intended to identify forward-looking statements. Readers are cautioned that certain important factors may affect the Company's actual results and could cause such results to differ materially from any forward-looking statements that may be made in this news release. Factors that may affect the Company's results include, but are not limited to, regulatory approvals, product demand, market acceptance, impact of competitive products and prices, product development, commercialization or technological difficulties, the success or failure of negotiations and trade, legal, social and economic risks, and the risks associated with the adequacy of existing cash resources. Additional factors that could cause or contribute to differences between the Company's actual results and forward-looking statements include, but are not limited to, those risks discussed in the Company's filings with the U.S. Securities and Exchange Commission. Readers are cautioned that actual results (including, without limitation, the timing for and results of the Company's commercial and regulatory plans for Dario™ as described herein) may differ significantly from those set forth in the forward-looking statements. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
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SOURCE DarioHealth Corp.
