Digital chronic condition management company DarioHealth announced it has entered into a strategic commercial agreement with GreenKey Health, a company focused on obstructive sleep apnea.
The alliance combines Dario’s cardiometabolic and behavioral artificial intelligence-powered health offerings with GreenKey’s method for managing obstructive sleep apnea.
GreenKey’s GreenKey4Life platform is a companion app that focuses on preventive care, connecting users with specialty providers for telehealth, diagnostic services and remote symptom monitoring for sleep disorders and related comorbidities, such as hypertension, diabetes, chronic obstructive pulmonary disease, congestive heart failure and kidney disease.
GreenKey markets its wearable device, Zzoma, as an alternative to continuous positive airway pressure for individuals with positional obstructive sleep apnea.
In a statement, the companies said they aim to boost awareness and secure payer contracts through a multi-channel marketing plan with commercial, administrative services, Medicaid, Medicare Advantage plans, self-funded employers, consultants, brokers and value-based care providers.
Initially, the focus will be on attracting large payers as key collaborators while simultaneously building a national network of aligned service providers.
The tiered program aims to improve member outcomes via enhanced sleep health, improved GLP-1 utilization and productive comorbidity management.
“We believe that this agreement marks a pivotal step forward in reshaping how chronic conditions like sleep apnea and cardiometabolic disorders are addressed in tandem,” Steven Nelson, chief commercial officer for DarioHealth, said in a statement.
“By combining our real-time engagement and data-driven platform with GreenKey’s powerful OSA cost-saving engine, we are offering payers a differentiated, value-based care solution that not only improves health outcomes but significantly reduces the total cost of care.”
THE LARGER TREND
In May, DarioHealth closed a debt financing facility for up to $50 million by Callodine Group and Rand Capital.
The funding restructured the company’s prior credit facility and was used to advance its B2B2C strategy across pharmaceutical partners, self-insured employers and payer organizations.
In March, DarioHealth reported full-year 2024 revenue of $27 million, a 32.9% increase from $20.4 million in 2023, primarily due to the consolidation of Twill’s revenue and increased revenue from its commercial channels. DarioHealth acquired Twill in February.
The company’s full-year B2B2C, employers and health plans recurring revenues increased 300% to $20 million, compared to $5 million in 2023.
Total revenue for the fourth quarter was $7.6 million, a 110% increase compared to $3.6 million in Q4 2023. DarioHealth stated that the growth was driven by the consolidation of Twill revenue and increased revenues from its B2B2C channels.
The company reported a gross profit of $4.2 million in the fourth quarter, compared to $132,000 for the same period in the prior year, representing an increase of 3,080%.
In January, DarioHealth closed a $25.6 million private placement of convertible preferred stock, with most of the funds secured from existing shareholders.
The balance of the funds was provided by a network of accredited healthcare investors and executives from within the healthcare sector.
The offering is expected to expand Dario’s cash runway and strengthen its financial position, enabling it to continue executing its current strategic plan.
The company said the plan aims to achieve an operational cash-flow-positive run rate by the end of 2025 while also building high-margin, scalable recurring revenues across both B2B and pharmaceutical channels.
In 2024, sleep specialist DBA 2Z Medical, a subsidiary of GreenKey Health, announced that Zzoma would be covered by major health insurance providers, including Aetna, Cigna, UnitedHealthcare and several BlueCross BlueShield programs nationwide.
Other companies in the sleep apnea space include Samsung, which in April announced a joint research initiative with Stanford Medicine to enhance the Galaxy Watch’s sleep apnea detection feature and create new AI-enabled innovations for proactive care.
The sleep apnea detection feature, which received FDA De Novo authorization last year, utilizes Samsung’s Health Monitor app to detect signs of moderate to severe obstructive sleep apnea in adults 22 years and older.
In 2024, Apple received FDA clearance for the sleep apnea feature in its Watch Series 10 and over-the-counter hearing aid software embedded in its Airpods Pro headphones.
The Watch Series 10 sleep apnea feature measures whether a user has moderate to severe sleep apnea based on a new metric called Breathing Disturbances.
The device utilizes software algorithms and an accelerometer to analyze signals collected over multiple sleep sessions, determining whether the wearer is at risk for sleep apnea.
