Regional Union Selects Dario's Cardiometabolic Solution for Diabetes, Hypertension, Weight Management and GLP-1 Support

Rhea-AI Summary

DarioHealth Corp. (NASDAQ: DRIO) announces a new contract with a regional union to provide its cardiometabolic solution to food industry workers living with diabetes, pre-diabetes, and weight management needs, as well as those taking GLP-1 or anti-obesity medication. The company's unique approach has been successful in engaging employees in healthier behaviors, leading to long-term results. The President of Dario, Rick Anderson, is optimistic about the company's strong start in 2024, with growing demand and the launch of Aetna and several previously contracted employers in the first quarter.

Insights

Market Research Analyst

The announcement of DarioHealth Corp. securing a new contract with a regional union represents a strategic business development that could have material implications for the company's revenue streams and market positioning. Considering the health management solutions sector, such contracts typically signify recurring revenue and enhanced market penetration, especially within the niche of labor organizations.

Notably, the union's choice to adopt Dario's cardiometabolic solution underscores the increasing demand for integrated digital health platforms. This trend reflects a broader shift towards preventative care and the management of chronic conditions, which is a growing segment within the healthcare industry. The emphasis on personalized chronic condition management solutions is particularly relevant, as it aligns with the industry's move towards personalized medicine and could lead to improved health outcomes and cost savings for employers.

The traction Dario is gaining in the public and labor market could serve as a catalyst for further adoption by similar organizations, potentially creating a network effect that strengthens Dario's market share. However, it is critical to monitor the execution of these contracts and the actual impact on Dario's financial performance over time.

Financial Analyst

DarioHealth Corp.'s announcement of a new contract with a regional union could be a positive signal for investors, indicating potential growth in the company's top-line revenue. The integration of their solution within the union's health management program may lead to increased user engagement and longer-term contracts, which are favorable for the company's financial stability and predictability of earnings.

The launch with Aetna and other employers in the first quarter of 2024 may compound this effect, suggesting a strong start to the year for Dario. The scalability of their digital health platform could mean that the marginal cost of adding new clients is relatively low, thereby potentially improving profit margins over time. However, investors should consider the costs associated with acquiring new contracts and the competitive landscape of digital health solutions when evaluating the company's long-term profitability.

It's also important to consider the company's past performance in delivering results with labor organizations and the potential for upselling or expanding services within existing contracts. These factors will be critical in assessing whether Dario can maintain its growth trajectory and capitalize on the opportunities in the digital health market.

Healthcare Industry Analyst

The adoption of Dario's cardiometabolic solution by a union representing food industry workers is indicative of the digital health sector's growth, driven by an increasing focus on chronic disease management and preventative care. Dario's approach, which includes support for diabetes, pre-diabetes, weight management and medication adherence, is aligned with the industry's move towards comprehensive, patient-centered care models.

GLP-1 agonists are a class of medications used in the treatment of type 2 diabetes and obesity and their inclusion in Dario's program highlights the company's commitment to addressing the full spectrum of cardiometabolic health. The effectiveness of such integrated solutions in engaging employees and managing their health conditions could lead to reduced healthcare costs for employers and insurers, a key consideration in the value-based care paradigm that is increasingly being adopted across the healthcare system.

Long-term, the success of Dario's deployments in diverse non-office environments, such as those represented by unions, could serve as proof points for the efficacy and adaptability of their digital health solutions. This could further drive adoption and potentially lead to expanded offerings or partnerships with healthcare providers and payers, which would be a significant development in the digital health space.

Dario's integrated solution to support improved whole health gains traction in public and labor market

NEW YORK, Jan. 11, 2024 /PRNewswire/ -- DarioHealth Corp. (NASDAQ: DRIO) ("Dario" or the "Company"), a leader in the global digital health market, announced today a new contract to provide its cardiometabolic solution to a regional union (the "Union"), expected to begin in the first quarter of 2024.

 

The Union, representing food industry workers, selected Dario to deliver integrated support for employees living with diabetes, pre-diabetes and weight management needs along with special support for those taking a GLP-1, or anti-obesity medication. The Union joins a growing set of public and labor clients using Dario's solution to provide highly personalized chronic condition management solutions to their members. Dario's unique approach is proven to engage employees in healthier behaviors over time, including successful deployments in non-office environments where unions are more prevalent, providing the long-term results clients require.

"We believe that this new contract is an early indicator of the strong start Dario is enjoying in 2024 as we see growing demand coupled with the launch of Aetna and several previously contracted employers in the first quarter of 2024. We've proven our ability to deliver results with multiple labor organizations across a variety of industries, and we are excited to welcome this customer to our platform and start delivering on the promise," said Rick Anderson, President of Dario.

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 people continuous and customized care for their 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 and 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 launch of the Union solution, its belief that the new contract is an early indicator of the strong start it is enjoying in 2024, and the benefits that may be realized by members using Dario's solutions. 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.

 

DarioHealth Corporate Contact
Mary Mooney
VP Marketing
+1-312-593-4280

DarioHealth Investor Relations Contact
Kat Parella
Investor Relations Manager
+315-378-6922

Media Contact
Scott Stachowiak
Scott.Stachowiak@russopartnersllc.com
+1-646-942-5630

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SOURCE DarioHealth Corp.

FAQ

What is the new contract announced by DarioHealth Corp. (NASDAQ: DRIO)?

DarioHealth Corp. (NASDAQ: DRIO) announced a new contract to provide its cardiometabolic solution to a regional union representing food industry workers.

What conditions does Dario's solution support?

Dario's solution supports employees living with diabetes, pre-diabetes, weight management needs, and those taking GLP-1 or anti-obesity medication.

Who is the President of Dario?

The President of Dario is Rick Anderson, who is optimistic about the company's strong start in 2024.

What is the ticker symbol for DarioHealth Corp.?

The ticker symbol for DarioHealth Corp. is DRIO.