Photo credit: DarioHealth
Digital health startup DarioHealth struck a deal with employee wellness company Vitality Group to expand its foothold in the self-insured market. DarioHealth is one of several digital health companies focused on helping users manage chronic conditions, such as diabetes and hypertension. What sets it apart from its competitors, is that DarioHealth has created a glucometer that plugs directly into users’ smartphones, automatically recording their results.
Vitality offers wellness solutions for self-insured employers, but the company has recently broadened its focus to include digital therapeutics. Self-insured companies have the option to select from curated health and wellness options to include in their health plan. Some of Vitality’s customers include McKesson, Apple, and Aetna.
As part of the agreement, DarioHealth will be offered Vitality’s platform. Next quarter, Vitality will also begin co-marketing DarioHealth’s digital therapeutic to its customers.
“We are excited to partner with Vitality to expand the access of the Dario Digital Therapeutic for chronic conditions to their extensive existing customer base of employers,” DarioHealth President and General Manager of North America Rick Anderson said in an emailed statement. “Digital solutions that can improve member health are becoming an increasingly important part of healthcare delivery to provide real-time or near real-time care, information and coaching for members and extend care into the home. The value of solutions that enable patient support outside of the traditional provider setting are being increasingly recognized as valuable to employees, especially during the current crisis in health care capacity.”
Vitality will also have the option to purchase up to 500,000 shares of DarioHealth’s stock, that will become exercisable dependent on the partnership’s success over the next four years. The exercise price will be $5.94 per share, up slightly from DarioHealth’s price of $5.75 at market close on Tuesday.
Starting in 2020, some of the shares will vest if the partnership brings in at least $500,000 during the year, according to a filing with the Securities and Exchange Commission. Future milestones include revenues of at least $1 million for 2021, $1.5 million for 2022 and $2 million for 2023.