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DarioHealth Corp. (NASDAQ: DRIO) Prominently Positioned for Digital Therapeutics Consolidation - Seite 2

Race To Retail Centric Medical Services

As Dario continues to land employers, health plans, and health providers in addition to strategic partners such as Sanofi (NASDAQ: SNY), some of the largest companies race to establish a retail-centric medical services care model intended to compete with physician-owned practices and some medical facility business models.

Independent Kairos Policy Group noted Dario is likely to be considered a prized target in the race to first mover advantage in retail medical services.

“Digital medical services are expected to play a growing role in the virtual care offering and community access model. CVS Health appears more ready to capitalize though. One company in particular, Dario Health, appears a likely M&A or strategic partner for CVS Health in 2022 as the company continues to build out the virtual care offering. If true, this would give CVS Health a clear competitive advantage in the digital medical services market over Amazon”.

Sanofi, a big-brother sponsor of Dario, recently included DarioHealth as a “success” in its digital innovation partnerships.

Dario’s patient-centric platform is leading the consumerization of healthcare and dominating the digital therapeutics marketplace. The Company’s success is generating significant interest from larger consolidators in patient-centric virtual healthcare, who realize that the use of technology on an increasing scale is the key to shifting to a value-based care model. Under a value-based care model, insurers and employers require providers to be more accountable for costs and patient outcomes. Access to real-time data is critical to make a Pay-for-Performance model work.

A sign of the consolidation occurring in value-based care model is the $8 billion acquisition of Signify Health by CVS Health, announced on September 5, 2022. Much like Dario Health, Signify gathers the kind of data that is appealing to major players in the healthcare market. Signify gathers a tremendous amount of data on the health status and needs of the Medicare Advantage population through home-health services. Dario gathers valuable information directly from consumers via its software platform. The Company uses billions of data points annually to customize the delivery of continuous and connected support. Dario has clinically proven durable behavioral change, which results in improved healthcare outcomes and a measurable ROI for payers.