DarioHealth Corp. Global Digital Health Platform - NASDAQ: DRIO
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
DarioHealth Corp.
Global Digital Health Platform
NASDAQ: DRIO
Forward Looking Statements
• This presentation of DarioHealth Corp. (the “Company”) and statements of our management or agents related thereto contain or may contain forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”). Statements which are not historical reflect our current expectations
and projections about our future results, performance, liquidity, financial condition, prospects and opportunities and are based upon information currently available to
us and our management and their interpretation of what is believed to be significant factors affecting our business, including many assumptions regarding future events.
Words such as “seek,” “intend,” “believe,” “plan,” “estimate,” “expect,” “anticipate,” “will,” “would,” and other similar expressions all denote forward-looking statements
within the meaning of the Act.
• Readers are cautioned that actual results, performance, liquidity, financial condition and results of operations, prospects and opportunities could differ materially and
perhaps substantially from those expressed in, or implied by, these forward-looking statements as a result of various risks, uncertainties and other factors. Factors that
could cause or contribute to such differences include, but are not limited to our compliance with regulatory requirements, the impact of current and any future
competition, our current and future capital requirements and our ability to satisfy our capital needs through financing transactions or otherwise, our ability to
manufacture, market and generate sales of our Dario™ diabetes management solution, as well as other factors and risks discussed in the Company’s filings (including the
results of the company’s commercial and regulatory plans for Dario™) with the U.S. Securities and Exchange Commission. We undertake no obligation to publicly update
any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
• In addition, readers are cautioned that any estimates, forecasts or projections contained in this presentation or as may be discussed by our management or agents have
been prepared by our management in good faith on a basis believed to be reasonable. However, such estimates, forecasts and projections involve significant elements of
subjective judgment and analysis and no representation can be made as to their attainability. No representation or warranty (express or implied) is made or is to be
relied upon as a promise or representation as to our future performance. Readers are cautioned that such estimates, forecasts or projections have not been audited and
have not been prepared in conformance with generally accepted accounting principles.
2
INVESTMENTS HIGHTLIGHT Global Market Opportunity Product Excellence Powerful Business Model Exciting Growth Opportunities
Dario at a glance
PROVEN SUCCESS AMONG THOUSANDS OF USERS WORLDWIDE
Concrete ROI of $200 per user per month
Founded in 2011
Offices in New York and Israel
60 Employees Since
Q4 - 2015 Q3 - 2017 Q1 - 2015 Q1 - 2016
Serving customers in 6 countries
Since
5 Countries fully reimbursed Q1 – 2015
*Partial insurance coverage
4 Regulatory bodies approvals/clearance
$9M in Yearly Sales run Rate*
Since
Q3 - 2015
*Based on Q3-2018 numbers: Total collected of $2.21M = Insurance coverage
DarioHealth Corp. (NASDAQ: DRIO) is a leading global digital health platform revolutionizing the way people manage their health across the chronic condition spectrum. By harnessing big data, machine learning, and automation, we have developed a novel approach of empowering individuals to analyze and personalize their lifestyles without having their disease slow them down. Already the highest rated diabetes solution by more than tens of thousands consumers who love the user-centered approach, DarioHealth is rapidly moving into new chronic conditions and geographic markets.
DARIO HEALTH - TRANSFORMING CHRONIC MANAGEMENT FROM
TRADITIONAL & GENERIC TO DIGITAL & PERSONAL
TRADITIONAL: DIGITAL:
Periodic data < < Real-time streamed data
General statistics based treatment < VS < Personalized performance-based treatment
Independent factors - silo events < < Dependency reaction of events
Driven by theories & independent professionals < < Driven by personalized data & AI technology
USER CENTRIC
Personalized User Experience
Users are in the driver seat of their
lifestyle improvement
Global market opportunity
ANNUAL COST OF CHRONIC DISEASES IN THE USA
90% Heart Disease
Arthritis
$140B Cancer
$174B
of the Nation’s $3.3 Trillion in annual & Stroke
Health Care expenditure $190B
is for people with CHRONIC Obesity
$147B
and mental health Alzheimer's
Diabetes
conditions $237B
$200B
Hypertension
$131B Epilepsy
$15.5B
Source: Directs costs, CDC 2018480
Worldwide diabetes population
30.3
Americans, or 9.4% of the population, have diabetes.
2018 1.25
American children and adults have Type1D.
diabetes
86
numbers Americans age 18 and older have prediabetes.
(in millions) 7.2
Americans with diabetes are undiagnosed.
1.5
Americans are diagnosed with diabetes every year.
CDC 2018DIABETES COST TO HEALTH CARE SERVICES
Diabetes costs
$327B ( 26%)
Vs $245 billion in 2012
Direct Costs
$237B ( 26%)
$176 billion in 2012 $X $X * 2.3
Health care cost for
Indirect Costs Americans with
$90B ( 23%) diabetes is 2.3 greater
$69 billion in 2012 then those without.
Source: ADA 2018Product excellence
INTEGRATED HOLISTIC APPROACH
Unlike other companies who build their offering
around a device and then cobble together a basic
Operation & Data & web interface and generic coaching, Dario's
Services Analytics
solution is powered by sophisticated software that
enables members to have a highly unique
Hardware Application
experience with tailored coaching and support that
goes beyond the basics of chronic condition
management.ADAPTIVE MODEL TO ANY CHRONIC CONDITION
OBESITY
HYPERTENSION
DIABETES
PRE-DIABETESOUR SOLUTION
DARIO APP DATA & AI
DEVICE & STRIPS SERVICE
over
DARIO ENGAGE
-DEVICE AGNOSTIC-UNIQUE EXPERIENCE
COMBINATION HARDWARE , SOFTWARE & SERVICE
DIGITAL & LIVE COACHING
Nasdaq: DRIO 17DARIO USER’S JOURNEY TO BEHAVIORAL MODIFICATION
TOOL &
DIAGNOSED >> AWARENESS MOTIVATION
LEARNING SELF >> BEHAVIORAL CHANGE
DIRECTEDINTEGRATED END 2 END HOLISTIC CARE APPROACH
USER CENTRIC COMPONENTS
DARIO DARIO
DEVICE SERVICE TOOLS
CHANNELS APP ENGAGE
DIGITAL INTERVENTION CRM COACH BOT
DTC RETAILERS
DATA & AUTOMATION / AI
REPORTING PREDICTIVE
PAYERS DISTRIBUTERS
CONTENT
LIBRARY
ANALYTICS
PROFESSIONAL PATIENTS
S Multi Channel COACHING
SMS, PUSH, In app PROGRAM
BILLING ONLINE SHOP
PAYERS PROVIDERS
JOURNEY LOYALTY
LIBRARY ENGINEMINIMIZING HEALTHCARE COSTS
2.3% 12-43% Hospital & ER
Reduction In Reduction in
Visits
diabetes risks
HbA1C
Yields substantial savings Cost more than $100,000 a year Cost Containment & Medical Claims Savings
SAVING $230
Per patient per month
*Showed on more then 17,000 users in clinical papers submitted to the ADA.DARIO VS COMPETITORS
Company Glucose Monitor App Open Platform Real-Time Coaching
Dario Health Yes Yes Yes Yes
Yes Yes
Livongo Not on the monitor No Yes
Dedicated handset
itself
mySugr No Yes No No
Glooko No Yes Yes No
WellDoc No Yes No No
Omada No Yes No Yes
21Powerful business model
*CPA = Cost Per Acquisition
*ARPU= Average Revenue Per User
*PMPM = Per Member Per Month
TRIPLE STAGE B2C FUNNEL
REVENUE GENERATING MODEL OPTIMIZING CPA* vs. ARPU*
GOAL: CPA efficiency via multiple
distribution channels
45% Conversion to Paying Users
GOAL: convert users into membership with
higher ARPU and better clinical outcomesEVOLVING FROM DEVICE TO MEMBERSHIP OFFERING
Best practices from digital industries brought to healthcare:
• Higher ARPU
Hypertension
• Higher contribution
Program
• Better Clinical Outcomes
OTHER
CONDITIONS
3nd PMPM -The Future-
Today
Offering
CDE Personal coach
2nd PMPM PERFORMANCED
BASED
Offering
Unlimited disposables,
MEMBERSHIP
Service & Content
1st PMPM
Offering MEMBERSHIP
Disposables only -2018-
SELL DEVICE & SUBSCRIPTION
DISPOSAL -2017-
SINGLE EVENT
-2016-HEALTHY MIX OF MEMBERSHIP PROGRAM IN THE DARIO SHOP
Transforming the business from selling disposables to selling full package with physical and digital service
driven by performance model: SAAS of the digital health, with higher contribution.ENABLE SCALABILITY: MULTIPLE CHANNELS WITH MULTIPLE STAKEHOLDERS
B2B2C B2C
B2B B2P
Payers Partners Providers Consumers
Insurer, Clinical, Chronic &
Pharma,
employer professional,CDE at risk
distributors, CROsSALES STRUCTURE – REDUCING CPA
B2B B2P B2C
Retail Mini-clinics, nurses
Endocrinologists Social Media
Hospitals, IDNS Payers
Individual nurses Google Shopping
Employers Distributors
Pharmaceuticals Concierge practices Amazon PrimeThe voice of the patient
ROSS’S PERSONAL JOURNEY DEBBIE’S PERSONAL JOURNEY
Ross, 42. Diagnosed in 1992. Debbie, uses Dario for her handicapped son who was diagnosed in 1993 with
Brought his HbA1C levels from average of 9-12 down to 7.3-8.5. T1D. Uses Dario to monitor her son in real-time.
I have had Type 1 Diabetes for over 25 years and for most of this time I My son actually uses the Dario. He is 38 years old and handicapped. He
have really struggled to control my blood glucose readings. For most of knows how to test and I love the Dario because he has all the
this time my Hba1c was between 9 and 12, since using the Dario information and supplies that he needs right at hand and he can use his
device my Hba1c has been as low as 7.3 and never higher than 8.5. cell phone, which he does to call us with his blood sugars when he
Using the Dario has meant that I am managing my diabetes better works, and it is synced with my husband’s phone and my phone so that
than I ever have and I am only getting better and better the more I use we know when he is low before he gets his snack.
it. I love the fact that the Dario device is so small and that it connects I like the fact that we can send his readings to the doctor before the
with my iPhone. It also helps me calculate my insulin based on my visit so they can look over them. I like receiving the reports every month
food. I can even scan bar-codes of food to find carbs. to see what his hypos and hypers have been so we can try to do a little
better. I just think that the Dario is the best thing since sliced bread!REVIEWS AND RATING
Exciting growth opportunities
REVENUE GROWTH (IN THOUSANDS) Deferred
Revenue
$2,500
$50 $355
$2,000 $2,030
$1,888
$1,756
$1,500 $1,578
$1,375
$1,210
$1,000
$1,007
$838
$728
$669
$500 $568
$308
$273
$175
$0 $67
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018LONG TERM POTENTIAL
1% of US Market (30.3 M) = $120M*
1% of Worldwide (480 M) = $1.8B*
250K users = $100M
*Model assumes $30 ARPUMULTIPLE DRIVERS FOR CONTINUOUS GROWTH
Source of Existing & new Existing & new New types of users
Revenue users sales channels (CDEs)
Increase
TAM & SAM
Key Drivers of Conversion to Increase
Increase LTV
contribution Expansion PMPM ARPU
of the offering
Investments beyond Diabetes Product
Sales & marketing Data & AI
Focus experienceRECENT NEWS:
CONTINUED GROWTH AND PROGRESS INTO B2B RETAIL RELATIONSHIPS
Q2 Results –
sales up 17%
FDA clearance for 14 quarters of growth Retail Agreement Retail agreement
iPhone 7,8,X in a row Giant Eagle Best Buy
MAR
2018
DarioHealth presents Complete significant Q3 Results –
new data of more than private placement Hit $5.7M revenue
17,000 users at ADA financing of approx. first 9 month of 2018
$11MSTRONG CAPITALIZATION, WELL POSITIONED TO SUPPORT GROWTH
36.6 M SHARES, HELD BY: Management Investments
(Cash and Salary paid in shares)
FAMILY OFFICES & ACCREDITED INVESTORS
$1,405K BOARD MEMBER
VCs & INSTITUTIONS
BOARD & MANAGEMENT 23.5%
$796K CEO
PUBLIC 36.4%
$84K CCO
15 M WARRANTS 31.9% $1,617K CFO
EXERCISE PRICE OF $1.80 (EXPIRY: SEP 2019)
8.2%
EXERCISE PRICE OF $4.34 (EXPIRY: MAR 2021)
EXERCISE PRICE OF $1.25 (EXPIRY: SEP 2021) $303K COO
*NO DEBT! TOTAL $4,205K
Company is post significant financing and is financed into 2020Erez Raphael | CEO
Mr. Raphael Digital Health Entrepreneur, has over 20 years of systems and
software development experience in various industries including mobile, life
science, medical device, health IT, mHealth and digital health solutions.
EXECUTIVE TEAM AND BOARD MEMBERS
Yoav Shaked | Chairman Zvi Ben-David | CFO
Since 2011, Mr. Shaked has served as a partner at Sequoia Capital, a leading Mr. Ben-David has 25 years of financial and accounting experience, particularly
global venture capital firm. Mr. Shaked has more than 15 years of experience of with medical device companies. Among his previous roles, he served as
founding several medical device companies. Corporate VP & CFO of Given Imaging.
Olivier Jarry | President & CCO João Mendes-Roter | VP Marketing
Mr. Jarry has managed innovation at the crossroads of technology, healthcare With over 20 years of experience, Ms. Mendes-Roter is a marketing executive and
and patient-centricity for three decades on five continents. He has had several online digital expert in growth marketing and direct response. she held senior
executive roles in life sciences multinationals such as leading the global roles at 888 Holdings and gained valuable experience at RadView Software and
Diabetes Care division of Bayer. Dun & Bradstreet.
Professor Itamar Raz | Medical Director Yinon Amir | Head of Software
Mr. Raz, is a full professor of Internal Medicine and was the Head of the Mr. Amir brings vast experience in software development, engineering practices,
Diabetes Unit at Hadassah University Hospital 2000-2015, Prof. Raz is currently digital technologies, solution, architecture and design, as well as large scale
serving as head of the Israeli National Council of Diabetes and is the initiator projects management, and customer delivery management, as a senior
and leader of the National Diabetes Prevention and Care Plan in Israel. management position in Amdocs
Dror Bacher | COO Allen Kamer | Board Member
Mr. Bacher has more than 17 years of software business experience, including Allen is a successful entrepreneur and experienced corporate executive in the
managing positions in product development at both mobile and semi- healthcare and medical informatics space. Allen has nearly 25 years of experience
conductor companies. Previously, he held numerous executive positions, in converting health information to health intelligence and delivering solutions
including a leadership role at Amdocs. that improve care delivery, quality and cost-effectiveness.
Yael Lipskin-Moshe| Director of Product Limor Drezner| VP HR
Yael is a professional product manager, specializing in mobile apps. Backed by 14
Limor is a professional HR & talent acquisition manager, holding vast
years of experience, working on products of Wix, Gett, Macabi Health.
experience from both corporate and startup companies and in her previous
Yael combines both vision and creativity in crafting the user experience that will
role served as Head of HR for Gett IL (As well as Microsoft, HP, Refael)
best serve our customer needs.
Michal Hershkovitz | VP Clinical & Regulatory Glen Moller| Board Member
Glen Moller is CEO at BehaveCare, Inc. In his past career he held the position
Michal has managed global regulatory strategy design and implementation as
of President-Health Plans at Concerto Health Services, Inc., CEO Medicare
well as global clinical studies for three decades in the Medical Devices and
Division at Centene Corp., CEO at ArroHealth, Chief Operating Officer
Pharmaceutical industry.
Express Scripts Insurance Co. CMO for Oxford Health Plans.Commercial Office R&D Center 142 W 57th Street 8 Hatokhen Street 8th Floor North Industrial Park New York, NY 10019 Caesarea 389000 USA Israel partnershipgroup@dariohealth.com www.dariohealth.com
You can also read
