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Demonstrates robust demand in the employer market
Contract launches anticipated to begin producing revenue this quarter
NEW YORK, July 12, 2021 /PRNewswire/ -- DarioHealth Corp. (Nasdaq: DRIO), a leader in the global digital therapeutics (DTx) market, today announced the launch of three new employer client contracts, including one global partnership, for the Company's new behavioral health solution powered by wayForward. These contracts are for a fixed monthly fee based on the number of employees with access to the behavioral health platform and are expected to contribute to revenue beginning in the third quarter of 2021.
The COVID-19 pandemic highlighted the importance of supporting employee behavioral health, and today employers increasingly cite mental health as a top organizational concern. A recent study found that 70% of U.S. employers cite mental health as a major workplace issue, a significant increase from 59% in the year prior.1
We anticipate additional agreements for our behavioral health solution over the next couple of quarters from our existing pipeline of employers. Dario's behavioral health solution uniquely addresses an unmet need that exists in most company's behavioral health benefits for the large number of people who would benefit from some assistance, but do not have the severity of behavioral health issues that require provider visits. Our artificial intelligence (AI) based screening mechanism, digital cognitive behavioral therapy modules and human coaching allows us to provide care to a greater number of people at a lower average cost- a differentiated approach relative to competition. Importantly, our solution has been shown to significantly reduce anxiety and depression in clinical studies.
"We are excited to add additional customers for Dario's behavioral health solution and believe it continues to validate the expansion of our platform through the acquisition of wayForward. We believe that these contracts demonstrate the importance of being able to provide individual and integrated solutions while delivering significantly improved health outcomes and savings," said Rick Anderson, President and General Manager, North America, DarioHealth, "We are also pleased to report that we have recently been selected to provide multiple solutions for several employer customers and look forward to announcing them once contracting is complete."
The Company also announced that on July 9, 2021, Mr. Glen McLane was granted a non-qualified stock option award to purchase 20,000 shares of the Company's common stock, pursuant to Nasdaq Listing Rule 5635(c)(4) outside of the Company's existing equity compensation plans in connection with Mr. McLane's employment by the Company as its Special Vice President of Market Access. These options were granted as an inducement material to Mr. McLane becoming an employee of the Company, in accordance with Nasdaq Listing Rule 5635(c)(4). The option will have an exercise price per share of $18.62 (the closing price of the Common Stock on the Nasdaq Stock Market on July 9, 2021, the grant date). The option shares will vest over a three-year period and is subject to a one-year cliff beginning on the date of grant, subject to Mr. McLane's continued employment by the Company on the applicable vesting date.
About DarioHealth Corp.
DarioHealth Corp. (Nasdaq: DRIO) is a leading global digital therapeutics company revolutionizing how people with chronic conditions manage their health. DarioHealth offers one of the most comprehensive digital therapeutics solutions on the market - covering multiple chronic conditions including diabetes, hypertension, weight management, musculoskeletal and behavioral health within one integrated technology platform.
Dario's next-generation, AI-powered, digital therapeutic platform supports more than just an individual's disease. Dario provides adaptive, personalized experiences that drive behavior change through evidence-based interventions, intuitive, clinically proven digital tools, high-quality software, and coaching to help individuals improve health and sustain meaningful outcomes.
Dario's unique user-centric approach to product design and engagement creates an unparalleled experience that is highly rated by users and delivers sustainable results.
The company's cross-functional team operates at the intersection of life sciences, behavioral science, and software technology and utilizes a performance-based approach to improve its users' health.
On the path to better health, Dario makes the right thing to do the easy thing to do. To learn more about DarioHealth 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 timing of expected revenues from the new client contracts, that it anticipates additional agreements for its behavioral health solution over the next couple of quarters and the belief that these contracts validate the expansion of its platform through the acquisition of wayForward. 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.