DarioHealth: Don't Overlook This Mini Livongo

Oct. 23, 2020 4:07 PM ETDarioHealth Corp. (DRIO)32 Comments
WY Capital profile picture
WY Capital
6.73K Followers

Summary

  • DRIO offers a diabetes management solution that is highly rated, provides strong ROI for all parties, and simpler than main competitor Livongo.
  • Seasoned executives in the digital therapeutics space have recently joined DRIO, which helps to validate the new strategy of the company.
  • DRIO recently decided to pivot from B2C to B2B2C, an opportunity that has substantially better economics. It has been executing well on this strategy and has amassed a $200mil pipeline.
  • A recent capital raise gives DRIO a substantial cash runway of more than 2 years and allows it to pursue its strategy.

Many technology investors have probably looked at and perhaps even bought Livongo (LVGO) in the last few months. A disruptor in the chronic disease market, LVGO generated great returns for investors, rising 7x since its IPO. LVGO isn't alone in this space, however, with competitors like Omada Health, Virta Health, Lark Health, and many other players. Looking back, it is amazing how LVGO generated such high returns with so many competitors in the field.

After LVGO got bought out, I started to look for other digital health plays, specifically competitors to LVGO. Recently, I found a tiny company called DarioHealth (NASDAQ:DRIO) that had already increased 2-3x in the past few months. Despite this increase, however, I found that DRIO has substantial potential to appreciate even further, as I will discuss in this article.

A brief description

DRIO is very similar to LVGO for diabetes, providing an integrated software and hardware solution to allow users to manage their diabetes.

Source: dlife

The only hardware required is a tiny, all-in-one device that can test your blood sugar levels just from being plugged into your phone, as shown above. After the blood sugar is measured, advanced analytics can be used to create charts, graphs, etc. to give the user feedback on what to do. Users can also contact a Dario Coach that can further advise them on how to manage their diabetes. Other interesting features include a feature that helps to measure sugar levels in food, gamification and incentives, emergency contacts, and more.

Legitimacy

Legitimacy is one of the main risks of a company like DRIO, so I did a lot of research to find out if DRIO is legitimate.

Firstly, I looked at both the iOS and Android stores, and sure enough, DRIO has received stellar reviews on both stores from over 16k consumers, showing that

This article was written by

WY Capital profile picture
6.73K Followers
Looking out for underrated companies that could shape the future of humanity, or just provide strong returns over the long run. Note that my opinions could change after conducting more research or based on anything, honestly. DYODD

Disclosure: I am/we are long DRIO. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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