DarioHealth, a provider of global digital therapeutics, closed a senior secured term loan facility of up to $50 million with OrbiMed, an investor in the healthcare industry, providing non-dilutive capital to fund the continued development of its platform and the acceleration of its adoption in the multi-billion dollar global chronic disease management market.
The five-year, $50 million facility is structured with a $25 million loan at closing and an additional $25 million available for a future draw before June 30, 2023, subject to DarioHealth achieving certain revenue thresholds.
“We are pleased to partner with DarioHealth as they continue to build a leading digital therapeutics platform focused on managing chronic conditions” Mark Jelley, partner at OrbiMed, said.
“Between this debt facility and the cash and cash equivalents on our balance sheet at end of the first quarter of 2022, we potentially have access to more than $100 million in capital. This amount excludes potential revenues relating to payments from Sanofi U.S. pursuant to our previously announced strategic agreement and growing cash flows from our operations and sales to our business-to-business (B2B) clients. We believe that this cash runway enables us to continue to invest in growing our B2B (commercial) market segment, which, for the first time exceeded our business-to-consumer revenue in the first quarter of 2022. In addition, it allows us to pursue our business plan for multiple years without the need for further capital raises,” Erez Raphael, CEO at DarioHealth, said. “We attribute this enviable position to the strength of our platform and its ability to generate interest from fortune 500 clients, global strategic partners and top financial institutions.”
