DRIO Stock: Why It Increased Today

By Amit Chowdhry ● Oct 14, 2021
  • The stock price of DarioHealth Corp (NASDAQ: DRIO) increased by over 10% pre-market today. This is why it happened.

The stock price of DarioHealth Corp (NASDAQ: DRIO) – a leader in the global digital therapeutics (DTx) market – increased by over 10% pre-market today. Investors are responding positively to DarioHealth announcing today it has entered into an agreement with one of the largest U.S. national health plans to offer its self-insured employer customers the Dario digital behavioral health solution as part of its behavioral health offering. 

The initial members are expected on the platform in the fourth fiscal quarter of 2021, with additional rollout anticipated over the course of 2022. And Dario will be paid a monthly fee for members that have access to the platform.

Improving access to mental health care continues to be a top priority for payers and technology-enabled care plays a key role in augmenting traditional provider networks. And the Plan chose Dario’s digital behavioral health solution to help improve access by using the Dario behavioral health platform as a central digital point of engagement to connect members with Dario tools, coaching and the Plan’s full suite of behavioral health resources.

The integration is also anticipated to help improve the experience for Plan members by utilizing Dario’s highly personalized approach to care. And using Dario’s AI-driven screening and triage capabilities, members will receive a set of care options tailored to their unique needs.

KEY QUOTE:

“Mental health care is complex and rife with barriers to care. We are excited to partner with the Plan to help solve for these issues and support their vision of more accessible and effective care that delivers better results for their clients. This is a landmark agreement for Dario that has the potential to generate millions of dollars in annual revenue. While this partnership represents a significant opportunity on its own, we believe it is just one of many potential opportunities with this customer.”

— Rick Anderson, President and General Manager of North American at DarioHealth

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.