- DarioHealth Corp. reported its second quarter financial results Aug. 12, showing a revenue increase on a quarter-to-quarter basis, as well as gross profit increases of 95 percent and 60 percent on year-over-year quarterly and six-month measures, respectively
- CEO Erez Raphael recently appeared on Fox Business news forum “The Claman Countdown” to discuss the company’s health and the state of the telemedicine industry amid reports of high-value M&A activity
- Telemedicine has gained significant popularity as a means of maintaining health standards while reducing or eliminating the risk of virus transmission during the ongoing COVID-19 pandemic
- U.S. President Donald Trump recently signed measures designed to make emergency authorization for insurance reimbursements for telehealth services more permanent beyond the duration of the pandemic, and many private insurers are beginning to follow suit
- DarioHealth has gained market attention as it has racked up successes in advancing its remote health monitoring platform for diabetes and hypertension patients where it is commercially available in the United States, Canada, the United Kingdom, Europe and Australia after clearing regulatory hurdles
- The company announced its first two remote patient monitoring agreements in North America in June, followed by an agreement covering the United Kingdom and Ireland in July
The innovative energy driving the health technology company DarioHealth (NASDAQ: DRIO) has generated a series of successes for the small-cap company, and DarioHealth is anticipating additional developments in the coming weeks that may help the company continue to grow and mature, according to CEO Erez Raphael in the company’s just-released Q2 financial statement.
“The COVID-19 pandemic has accelerated our ongoing transformation to a business-to-business-to-consumer (B2B2C) digital therapeutics leader,” Raphael stated in the Aug. 12 statement (http://ibn.fm/clts7). “We advanced late-stage discussions with health plans and self-insured employers, who we believe recognize how our industry-leading user engagement and satisfaction metrics lead to improved health for their member and employee populations. … We believe that we are poised to announce new and potentially transformational agreements in the next few weeks.”
DarioHealth recorded a 7.2 percent sequential increase in revenues from the first to second quarter and a 95 percent year-over-year increase in quarterly gross profit due principally to an increase in membership revenues and a decrease in product costs during the second quarter, according to the financial report.
On a six-month reporting measure, the company saw revenues decrease 11.3 percent year-over-year as part of its transformation from a direct-to-consumer operation, but gross profits increased by 60 percent as a result of the same processes, resulting in $1.4 million in added profits for the first half of 2020.
Fox Business news forum “The Claman Countdown” recognized DarioHealth’s growing success in an Aug. 7 segment that featured Raphael’s perspective about M&A activity within the telemedicine sector and DarioHealth’s strong trending in the marketplace at the time (http://ibn.fm/hWIOl).
“We are in a very, very special period of time when we see a huge transformation of the space,” Raphael told interviewer Liz Claman.
Raphael added that DarioHealth has been “part of the digital health and digital therapeutics (sector) for the last 10 years and we have been there for a long time building very smart technologies, and I can tell you the last five months are big in terms of the transformation that we feel. A lot of bills that we were trying to get for a lot of fields of science, we feel we are getting there and this is a very good signal from the White House that understands the importance of virtualization of the health care industry.”
DarioHealth’s CEO was responding to news that U.S. President Donald Trump had signed an executive order directing Centers for Medicare and Medicaid Services (“CMS”) officials to make some emergency telehealth regulatory reforms permanent so that they will remain in place even beyond the pandemic, although keeping some other emergency measures in place, such as enabling patients to get coverage for telehealth visits at home, will require Congressional approval (http://ibn.fm/0RdQa).
The use of telemedicine services has surged during the COVID-19 pandemic as patients and medical providers have worked to maintain standard of health services through remote, virtual platforms to minimize the risk of spreading infection. Medicare’s fee-for-service telehealth claims rose from 13,000 per week before the pandemic to nearly 1.7 million by the end of April, and claims to private insurers have grown 4,347 percent year-over-year (http://ibn.fm/UbzRt).
Trump’s executive action also directed the Department of Health and Human Services (“HHS”) to begin a payment program designed to make government healthcare program reimbursements more consistent to rural community hospitals as they demonstrate quality care, and directed the Departments of Agriculture (“USDA”), HHS and the Federal Communications Commission (“FCC”) to form a task force designed to improve broadband infrastructure in rural communities for telehealth providers.
“Today I’m taking action to ensure telehealth is here to stay,” Trump said in announcing the orders.
DarioHealth’s CEO noted that insurance companies in the private sector are also moving to adopt such measures, building a framework by which telehealth services can be recognized as vital and quality-focused so that providers and patients may utilize technological tools under a rubric that authorizes reimbursements.
DarioHealth’s Remote Patient Monitoring (“RPM”) digital therapeutics platform transmits patient information to physicians and also delivers occasional “nudges” to patients when its automated programming recognizes a need (http://ibn.fm/3Hl9w). The RPM is specifically designed for diabetes and hypertension patients, with the potential for monitoring and helping to manage a wide array of chronic conditions in the future.
The company’s blood glucose monitoring system has U.S Food and Drug Administration (“FDA”) clearance and has similarly been approved by European, Canadian and Australian regulatory agencies that have allowed it to become commercially available in the United States, Canada, the United Kingdom and Ireland, Germany, Italy, and Australia while continuing to expand into new geographic markets and to support additional chronic conditions.
For more information, visit the company’s website at www.DarioHealth.com.
NOTE TO INVESTORS: The latest news and updates relating to DRIO are available in the company’s newsroom at http://ibn.fm/DRIO
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