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NEW YORK/SAN FRANCISCO - DarioHealth Corp. (NASDAQ:DRIO), a digital therapeutics company with a current market capitalization of $30.55 million, has formed a strategic commercial agreement with GreenKey Health to develop an integrated care solution targeting obstructive sleep apnea (OSA), according to a press release statement. According to InvestingPro data, the company has demonstrated strong revenue growth of 47.2% over the last twelve months.
The partnership aims to address a condition that affects over 29 million Americans, with up to 80% of moderate to severe cases currently undiagnosed. The companies cite annual U.S. costs related to OSA and its associated conditions at more than $150 billion.
The collaboration combines Dario’s cardiometabolic and behavioral health solutions with GreenKey’s specialized approach to OSA management. Their joint program will focus on engaging commercial health plans, Medicaid, Medicare Advantage plans, and self-funded employers.
Steven Nelson, Chief Commercial Officer at Dario, said the agreement offers "a differentiated, value-based care solution that not only improves health outcomes but significantly reduces the total cost of care."
The companies’ tiered program aims to deliver improved member outcomes through enhanced sleep health and comorbidity management, while reducing healthcare costs by decreasing emergency department and inpatient utilization.
Michael Markus, Chief Executive Officer of GreenKey Health, described the collaboration as offering "a clinically integrated funnel that identifies the right patients for the right programs."
The joint solution targets the interconnected conditions often associated with sleep apnea, including diabetes, obesity, hypertension, and depression, through a data-driven approach that aligns with the healthcare industry’s shift toward value-based care models. With a healthy gross profit margin of 69.41% and a current ratio of 2.01, DarioHealth maintains a stable financial position despite current market challenges. InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report, which provides deep-dive analysis of this and 1,400+ other US stocks.
In other recent news, DarioHealth Corp reported its first-quarter 2025 earnings, revealing a notable earnings per share (EPS) of $0.14, surpassing the anticipated loss of $0.10. However, the company’s revenue of $6.75 million did not meet the expected $7.47 million, representing a shortfall in projections. The company also announced amendments to its preferred stock terms, extending the mandatory conversion period and introducing a new dividend policy. In terms of analyst activity, Stifel adjusted its outlook on DarioHealth, lowering the price target from $2.00 to $1.50 while maintaining a Buy rating. This revision was influenced by the company’s performance and issues related to a transition with a large health plan and tariff-related delays. Despite these challenges, Stifel analysts anticipate significant contract awards beginning in the second half of 2025. DarioHealth aims to achieve free cash flow breakeven by early 2026, with Stifel projecting this milestone later in 2026 or early 2027. The company is reportedly well-positioned financially to sustain operations until reaching breakeven.
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