StreetSmart Live! Presents Frank Holmes’ Virtual Junior Mining Expo on 11/12/2020. Learn More

Get the Latest Investment Ideas Delivered Straight to Your Inbox.

TICKERS: DRIO

Individuals Succeed Using This Digital Therapy—Now It's Moving to Insurers
Contributed Opinion

Share on Stocktwits

Source:

Matt Badiali Independent financial analyst Matt Badiali profiles a digital therapeutics company that is changing diabetes treatment.

I reread the study twice. The numbers blew me away.

According to the American Diabetes Association, the annual cost of diagnosed diabetes in the U.S. is over $327 billion.

That's almost $1,000 per U.S. citizen…every year.

The average person with diabetes costs 2.3 times more in healthcare costs than someone without diabetes. That's a staggering number.

That's why I get excited when I come across a company offering something new and useful in the diabetes space.

Here's my caveat…I'm a scientist. A geologist by education, but I took enough math and science courses to get my head around statistics. I know good data from bad. And I've seen almost as many B.S. claims in the health sector as I have in mining.

So, when I read the claims from this tiny digital health company, I was skeptical.

However, the data is compelling—both from studies and from the commitment of its users. DarioHealth Corp. (DRIO:NASDAQ) is a global digital therapeutics company. It is revolutionizing the way we treat diabetes.

The company's app has over 60,000 users today. These are individuals who bought the product and pay for it themselves (rather than getting it through their employers or insurance).

Dario makes a blood glucose monitoring system that works with your smartphone. The app collects the data and helps users manage their blood glucose. It's so easy that the company had a massive buy-in when it began to study the actual effectiveness of its methodology.

It's like Fitbit for diabetics…and people love it. It has a 4.6-star rating on Google Play Store. And when you read the reviews, you see that the company immediately contacts folks with problems.

From 2017 to 2019, Dario's clients participated in eight scientific studies presented at three leading diabetes conferences.

Here's what they found…An average reduction of 1.4% in blood glucose (A1c) after one year. That represents a gross savings estimate of about $2,380 per person per year in health care costs.

That's a huge savings. And while the company sells primarily to individuals today, management believes they will close a deal with a large business or insurance company by the end of 2020.

That's the catalyst that will propel DarioHealth to its next level. And these digital health stocks move quickly. Take Livongo Health, for example.

Dario's closest peer, Livongo Health, was a $1.5 billion market cap company in October 2019. On November 2, giant digital health company Teledoc Health (NYSE: TDOC) acquired it for $14.4 billion. That's an 860% gain in a year.

DarioHealth is still in the growth stage. But this next transition, going from selling its services to individuals to insurers will be a huge turning point in the stock.

This is a great play in the digital health space, but don't take my word for it. The company will host a conference call on Thursday, November 12, 2020, to review its second quarter results. You can sign up for their call or watch it afterwards.

--Matt Badiali

Matt Badiali is a geologist and independent financial analyst. He spent fifteen years researching and writing about great investments inside the natural resources sectors. He can be reached at www.mattbadiali.net.

[NLINSERT]

Streetwise Reports Disclosure:
1) Matt Badiali: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I was paid by a third party to write this article. My company has a financial relationship with the following companies mentioned in this article: None. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in the article are sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.




Want to read more about Life Sciences Tools & Diagnostics investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe