Sanofi is joining forces with digital therapeutics company DarioHealth in a partnership intended to expand the use of technological tools as a way of managing chronic diseases.
Under the agreement, the two companies will collaborate on promoting Dario’s digital offerings, which people can access via their smartphones. Dario uses artificial intelligence to personalize its offerings, engaging and supporting users with virtual care. The New York-based company’s first offerings were direct to consumer products developed for people who have diabetes. In 2020, Dario expanded to include other medical conditions, and to serve business customers. Besides diabetes, indications now covered by Dario’s technologies include hypertension, pre-diabetes, and musculoskeletal conditions.
Sanofi’s agreement with Dario calls for the partners to collaborate on promoting the tech company’s multi-condition digital therapeutic, which encompasses diabetes, hypertension, weight management, musculoskeletal, and behavioral health. The two companies will work toward increasing the technology’s reach in the health plan market, while also selectively bringing the technology to employers. In addition, the agreement calls for the partners to develop new or better solutions that use Dario’s technology platforms, and for the partners to generate “robust evidence” to support future commercialization of the technology with health plans. The multi-year agreement is a $30 million deal that is subject to contingencies that were not specified.
“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,” Gustavo Pesquin, head, U.S. General Medicines, Sanofi, said in a prepared statement.
Last year through the third quarter, Dario reported about $14.5 million in revenue, a 164% increase compared to the same nine-month period in 2020. The company attributed the increase to an increase in direct-to-consumer sales and the consolidation of revenues from Upright Technologies and WayForward, two companies acquired in 2021.
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
Separately on Tuesday, Dario announced the sale of securities to institutional investors by means of a registered direct offering. This offering of 5.3 million shares for $7.49 per share will raise about $40 million. Dario said it will apply the proceeds toward commercialization of its digital health platform in the U.S. market.
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