Rédaction Africa Links 24 with Mario Aguilar
Published on 2024-02-21 11:00:35
DarioHealth, a company that specializes in developing apps for managing chronic diseases, recently made a significant announcement regarding its acquisition of Twill, a digital mental health company. This acquisition involves a $10 million payment in cash and a stock worth over $20 million at the end of Tuesday’s trading. By integrating Twill’s mental health app and related services with its existing products, DarioHealth aims to create a comprehensive offering that can attract a critical mass of large customers in a market where profits have been difficult to achieve.
Established in 2011, DarioHealth initially started with a diabetes app aimed at consumers, which later expanded to include hypertension and weight management. While the company still maintains its direct-to-consumer business, its primary focus has shifted towards selling its suite of offerings, including a musculoskeletal care program acquired in 2021, to health plans and employers. This strategic shift is aimed at reaching a much larger patient population. The company has made recent updates to make itself more appealing to clients, such as offering a new program centered around popular and expensive GLP-1 weight loss drugs, as well as publishing real-world data demonstrating that its tools can save clients money on downstream healthcare costs.
With the addition of Twill, DarioHealth is now able to address a top demand of employers by including a mental health app and related services in its portfolio. Despite its ongoing momentum, DarioHealth remains unprofitable and is publicly traded. The company’s own estimations, as stated in its earnings calls last year, suggest that it is still some distance away from achieving profitability. Before acquiring Twill, the company projected that it would need to generate about $80 million in revenue for the entire business to break even, which is approximately four times the roughly $20 million it anticipated for 2023. In November of the same year, DarioHealth reported a loss of over $40 million in the first nine months of 2023.
The acquisition of Twill signifies a strategic move for DarioHealth as it seeks to further expand its offerings and diversify its portfolio. By combining its existing suite of chronic disease management apps with Twill’s mental health app, DarioHealth is positioning itself to target a broader range of healthcare needs and potentially capture a larger audience. This acquisition is also reflective of the company’s ambitions to grow and solidify its position in the competitive digital health market.
As DarioHealth continues to evolve and expand its offerings, it is clear that the company is aiming to carve out a prominent space in the digital health sector. With its eye on attracting large customers by providing a more comprehensive suite of healthcare solutions, DarioHealth is making strategic moves to position itself for future success in an increasingly demanding and competitive industry.
