DarioHealth has entered a $30 million multiyear contract with Sanofi to accelerate the commercial reach of its digital therapeutics.
The chronic care company provides artificial-intelligence-powered digital health solutions for conditions including diabetes, hypertension, weight management, musculoskeletal and behavioral health, the latter two of which were added to its platform just last year.
The deal with Sanofi will open Dario up to partnerships with more health plans and employers that Sanofi provides its services to in the U.S.
The companies will also work together to develop new or enhanced digital health solutions on Dario’s platform and will generate evidence to support partnerships with health plans.
“We are thrilled to be chosen by Sanofi to expand into the digital health market. We believe that this is the first time that a large biopharmaceutical company and a digital health company are collaborating to commercialize digital health solutions in the U.S. market,” said Erez Raphael, Dario’s CEO, in a statement. “Dario’s proven digital therapeutic solutions and innovative technologies provide the perfect complement to Sanofi’s scientific expertise, market access and scale, creating a foundation for long-term success in support of Sanofi’s goal of expanding into digital health therapies for chronic conditions.”
Founded in 2011, DarioHealth provides tools to drive behavioral change through personalized care backed by data-driven interventions, tools and coaching.
The company’s stock has suffered significantly in the past year, but shares jumped 8.6% after the Wednesday morning Sanofi announcement.
Shares have climbed over 11% since Tuesday afternoon’s close.
“Our collaboration with Dario is another step towards accelerating Sanofi’s mission of reversing the course of chronic diseases through the integration of healthcare and technology in a way that gives people the tools to improve their health,” said Gustavo Pesquin, head of Sanofi’s U.S. general medicines division. “We are excited to help payers realize the potential digital health can bring to the patient experience, and we look forward to continuing to innovate with Dario on the next generation of chronic condition therapies.”
New York City-based Dario has accelerated its push into the musculoskeletal market in the past two years, most recently introducing virtual physical therapy program Dario Move back in October.
The program includes a sensor that tracks a patient’s adherence to exercise programs, offering real-time feedback and connecting patients with coaches and physical therapists.
The company had promised to release its own solution into the musculoskeletal market after acquiring wearable company Upright Technologies in January 2021 for $31 million.
The company also acquired behavioral health platform wayForward in May.
Investor interest in digital therapeutics startups indicates plenty of room for growth in the sector.
Digital therapeutics players raked in a record-breaking $3.4 billion across 122 deals in 2021, a 133% increase from the prior year.