DarioHealth, GreenKey Health Partner to Expand Sleep Health Program

DarioHealth, a digital chronic condition management company, has entered into a strategic commercial agreement with GreenKey Health, a company specializing in obstructive sleep apnea. The partnership integrates Dario’s cardiometabolic and behavioral AI-powered health solutions with GreenKey’s approach to managing sleep apnea, aiming to enhance the way these chronic conditions are addressed together.

Central to GreenKey’s offering is its GreenKey4Life platform, a companion app designed to provide preventive care. The app connects users to specialty providers for telehealth, diagnostics, and remote monitoring of sleep disorders and related comorbidities, such as hypertension, diabetes, COPD, congestive heart failure, and kidney disease. GreenKey also markets Zzoma, a wearable device positioned as an alternative to CPAP therapy for those with positional obstructive sleep apnea.

The companies announced their intention to raise awareness and secure payer contracts through a comprehensive multi-channel marketing strategy. This strategy targets commercial and administrative services, Medicaid, Medicare Advantage plans, self-funded employers, consultants, brokers, and value-based care providers. The initial phase of the partnership will focus on engaging large payers as key collaborators while simultaneously building a national network of aligned service providers.

Their tiered program is designed to improve member outcomes by enhancing sleep health, optimizing GLP-1 utilization, and managing comorbid conditions more effectively. According to Steven Nelson, chief commercial officer at DarioHealth, the agreement represents a significant advancement in tackling sleep apnea and cardiometabolic disorders in unison. He noted that by combining Dario’s real-time engagement and data-driven platform with GreenKey’s cost-saving sleep apnea solution, the companies offer a differentiated, value-based care model aimed at improving outcomes and reducing overall healthcare costs.

This partnership follows a period of rapid growth and strategic funding for DarioHealth. In May, the company secured a debt financing facility of up to $50 million from Callodine Group and Rand Capital, which restructured existing debt and supported its B2B2C strategy targeting pharmaceutical partners, self-insured employers, and payer organizations. Earlier, in February, DarioHealth acquired Twill, contributing to a full-year 2024 revenue of $27 million, a 32.9% increase from $20.4 million in 2023. The company's B2B2C recurring revenue surged 300% to $20 million, while fourth-quarter revenue doubled to $7.6 million compared to $3.6 million in the previous year. Gross profit for Q4 2024 rose to $4.2 million from $132,000 year-over-year, a 3,080% increase.

In January, DarioHealth raised $25.6 million in a private placement of convertible preferred stock, primarily from existing shareholders and accredited healthcare investors. This funding is intended to extend the company’s cash runway and support its strategy to achieve a positive operational cash flow by the end of 2025, while growing high-margin, recurring revenues across B2B and pharmaceutical channels.

On the GreenKey side, its subsidiary 2Z Medical announced in 2024 that Zzoma is now covered by major insurers including Aetna, Cigna, UnitedHealthcare, and several BlueCross BlueShield plans. The broader sleep apnea market is also seeing increased activity. Samsung, in collaboration with Stanford Medicine, is enhancing its Galaxy Watch’s sleep apnea detection through AI-driven features, and Apple’s Watch Series 10 has received FDA clearance for a sleep apnea detection feature. Apple has also embedded over-the-counter hearing aid software into its AirPods Pro, expanding its footprint in digital health.