NEW YORK - DarioHealth Corp. (NASDAQ: NASDAQ:DRIO), a digital health company, has announced a new contract with a national employer to implement its cardiometabolic health solution, which includes support for GLP-1 medications. This program is set to begin in the third quarter of 2024 and is aimed at assisting employees with conditions such as diabetes, pre-diabetes, hypertension, and weight management.
The unnamed employer, which operates in the environmental services sector, chose DarioHealth's comprehensive suite for its ability to foster sustainable behavior change, a critical factor given the high discontinuation rates of GLP-1 medications. According to research, 68% of patients stop using these drugs within their first year, potentially reversing weight loss benefits.
DarioHealth's platform leverages extensive data insights from over a decade of consumer engagement to create personalized experiences designed to maintain long-term member engagement. The company's recent acquisition of Twill has further enhanced its capabilities to provide behavioral support.
Steven Nelson, Chief Commercial Officer at Dario, highlighted the importance of a behavior change support program for effective GLP-1 management. He expressed confidence in the platform's ability to deliver lasting results, especially with the newly integrated features from Twill, which include access to providers and peer communities.
The company anticipates that at least ten more employer clients will adopt this integrated solution in the forthcoming quarter, aiming to address the challenges of managing multiple chronic conditions effectively.
DarioHealth's platform offers solutions for diabetes, hypertension, weight management, musculoskeletal pain, and behavioral health. The company markets its solutions to health plans, payers, self-insured employers, care providers, and directly to consumers.
This news is based on a press release statement from DarioHealth Corp. and includes forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from those projected.
In other recent news, DarioHealth Corp has revealed its strategic direction and financial progress, anticipating growth and profitability by 2025. The company's B2B2C business channel, which now accounts for 71% of pro forma revenues with high gross margins above 75%, is expected to drive significant revenue growth in 2024 and 2025. This growth is expected to be fueled by new contracts and cross-selling opportunities, particularly through the Twill acquisition.
DarioHealth's B2C business also demonstrated profitability, contributing $2 million in Q1 2024. The company's strategic B2B channel, which includes partnerships with pharmaceutical companies like Sanofi (EPA:SASY) (NASDAQ:SNY), is projected to achieve a $6 million annual run rate in 2024. DarioHealth aims to reach cash flow positivity by the second half of 2025, with a signed contract value of $60 million anticipated by mid-next year.
These are recent developments that reflect DarioHealth's optimism about its future, underlined by strong customer interest in their integrated healthcare solutions and the potential for increased revenue through strategic partnerships and product launches. The focus remains on the core B2B2C business and strategic B2B channels, positioning DarioHealth for sustained growth in the coming years.
InvestingPro Insights
DarioHealth Corp. (NASDAQ: DRIO) has recently secured a new contract which may bolster its market position, yet the company's financial metrics reveal a complex picture. According to InvestingPro data, as of Q1 2024, DarioHealth has a market capitalization of approximately $43.39 million, indicating a relatively small player within the digital health sector.
The company's revenue has experienced a contraction, with a decline of 28.57% over the last twelve months. This contraction could be reflective of the competitive nature of the digital health market or specific operational challenges the company is facing.
InvestingPro Tips suggest that DarioHealth's stock price has been quite volatile, with significant returns over the last week, month, and three months. This volatility may present opportunities for investors, but it also indicates a potential risk. The company's recent performance shows a 20.83% return over the last week and a 25.0% return over the last month. Still, it is worth noting that analysts do not anticipate the company will be profitable this year, and the valuation implies a poor free cash flow yield.
For those considering an investment in DarioHealth, it is crucial to weigh these factors. The company's liquid assets do exceed short-term obligations, which suggests some degree of financial stability in the near term. Moreover, while the company operates with a moderate level of debt, it has not been profitable over the last twelve months, and its price has performed poorly over the last decade.
For a deeper dive into DarioHealth's financial health and to access additional insights, including 11 more InvestingPro Tips, visit https://www.investing.com/pro/DRIO. And if you're considering an InvestingPro subscription, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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