After two decades of successfully scaling multiple healthcare companies, Steven Nelson joins DarioHealth as Chief Commercial Officer to accelerate revenue growth across the health plans, employers and pharma channels

NEW YORK, June 5, 2024 /PRNewswire/ -- DarioHealth Corp. (Nasdaq: DRIO) ("Dario", "DarioHealth" or the "Company"), a leader in the global digital health market, announced today a strategic reorganization designed to streamline leadership and focus the organization on accelerating its commercialization efforts. This move reflects the Company's commitment to bringing its innovative solutions to the market faster, maximizing customer impact, and driving the organization to profitability.

 

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To achieve this goal, DarioHealth is transitioning to a flatter organizational model. The President role will be eliminated, and dedicated C-level positions will be established for each core function, reporting directly to the Chief Executive Officer. The newly created role of Chief Commercial Officer (CCO) will be in addition to the existing C-Level roles in the Company. The Company believes that this structure fosters a more collaborative environment and ensures clear lines of communication which are essential for driving successful commercialization initiatives.

Further strengthening its commercial focus, DarioHealth is excited to announce the appointment of Steven Nelson as its Chief Commercial Officer of DarioHealth, Mr. Nelson will be instrumental in developing and executing strategies to drive rapid commercialization. Mr. Nelson will oversee Dario's global commercial activities, including growth strategy, sales, client management, marketing, strategic partnerships, and expansion into new markets. Mr. Nelson brings over two decades of experience building and scaling technology-centric healthcare companies.

Most recently, Mr. Nelson served as the Chief Executive Officer and President of Contigo Health, a multi-faceted collaborator for healthcare providers, plans and employers. During his tenure at Contigo Health, he led the company to revenue scale and turned the business to profitability, managed over 75 clients in the portfolio, and established several national and regional health plan partnerships as well as employer relationships.

Before his role at Contigo, Nelson served as the Chief Operating Officer of Anthem Inc.'s Diversified Business Group. There, he played a pivotal role in the "One Anthem" transformation initiative that developed strategic business plans resulting in a $7 billion run-rate revenue.

In a mutual agreement, Rick Anderson will step down in his role as President of the Company and will join the advisory board of DarioHealth.

"We are excited to welcome Steven as DarioHealth's Chief Commercial Officer. We are confident that his exceptional track record and experience will accelerate our growth, bring us to cash flow positive, and capitalize on our pipeline of commercial opportunities which, after the expanded product offering through the Twill acquisition, is larger than ever before. The addition of a CCO to our management structure ensures that there is a c-level executive strictly focused on commercial activities that will allow us to continue to deliver on our mission to transform the current health and care experience for members," said Erez Raphael, Chief Executive Officer of Dario.

"I am deeply grateful for Rick's leadership and friendship over the last 4 years," Raphael said. "Rick was integral to transitioning the Company into the B2B market and the growth we have seen. We will build upon the foundations he put in place, centered around innovation and a focus on the needs of the patients and families we serve, as we shape the company's future."

In conjunction with Mr. Nelson's appointment as Chief Commercial Officer, he was granted a non-qualified stock option award to purchase 500,000 shares of the Company's common stock, a non-qualified performance-based stock option award to purchase up to an additional 400,000 shares of the Company's common stock during each of the fiscal years ending December 31, 2024, as well as additional non-qualified performance-based stock option award to purchase up to an additional 450,000 shares of the Company's common stock during each of the fiscal years ending December 31, 2025, 2026 and 2027, pursuant to Nasdaq Listing Rule 5635(c)(4) outside of the Company's existing equity compensation plans. These options were granted as an inducement material to Mr. Anderson becoming an employee of the Company, in accordance with Nasdaq Listing Rule 5635(c)(4).

Mr. Nelson's non-qualified option to purchase 500,000 shares of the Company's common stock vest over three years, with one third of such shares vesting on June 1, 2025, and the remaining shares vesting in equal quarterly amounts. In addition, Mr. Nelson's non-qualified performance-based stock option award to purchase 400,000 shares of common stock, of which 150,000 shares commence vest upon the Company achieving 92% of a targeted revenue amount for the year ended December 31, 2024, and the remaining balance of 250,000 shares if the annual revenue is 100% or more of a targeted amount, provided, however that such options shall be canceled if the annual revenue does not reach at least 92% of the targeted amount. The Company also agreed to issue Mr. Nelson a stock option to purchase 450,000 shares of common stock, for each of the years ending December 31, 2025, December 31, 2026 and December 2027, of which 150,000 shares commence vesting if the Company's annual revenue is at least 92% of a targeted amount, 150,000 shares commence vesting if the Company's annual revenue is 100% or more of the targeted amount and an additional 150,000 shares will commence vesting upon reaching certain annual goals as determined by the Company's Board of Directors for such fiscal year, provided, however that such options shall be canceled if the annual revenue does not reach at least 92% of the targeted amount. Each of the performance options vest over a three-year period commencing on the first day of the following fiscal year to which such option relates, at the rate of 8.33% per quarter, at the last day of the relevant fiscal quarter.

About DarioHealth Corp.

DarioHealth Corp. (Nasdaq: DRIO) is a leading digital health company revolutionizing how people with chronic conditions manage their health through a user-centric, multi-chronic condition digital therapeutics platform. Our platform and suite of solutions deliver personalized and dynamic interventions driven by data analytics and one-on-one coaching for diabetes, hypertension, weight management, musculoskeletal pain and behavioral health.

Our user-centric platform offers people continuous and customized care for their health, disrupting the traditional episodic approach to healthcare. This approach empowers people to holistically adapt their lifestyles for sustainable behavior change, driving exceptional user satisfaction, retention and results and making the right thing to do the easy thing to do.

Dario provides its highly user-rated solutions globally to health plans and other payers, self-insured employers, providers of care and consumers. To learn more about Dario and its digital health solutions, or for more information, visit http://dariohealth.com.

Cautionary Note Regarding Forward-Looking Statements

This news release and the statements of representatives and partners of the Company related thereto contain or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as "plan," "project," "potential," "seek," "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate" or "continue" are intended to identify forward-looking statements. For example, when the Company discusses its belief that its new structure fosters a more collaborative environment and ensures clear lines of communication, which are essential for driving successful commercialization initiatives. Readers are cautioned that certain important factors may affect the Company's actual results and could cause such results to differ materially from any forward-looking statements that may be made in this news release. Factors that may affect the Company's results include, but are not limited to, regulatory approvals, product demand, market acceptance, impact of competitive products and prices, product development, commercialization or technological difficulties, the success or failure of negotiations and trade, legal, social and economic risks, and the risks associated with the adequacy of existing cash resources. Additional factors that could cause or contribute to differences between the Company's actual results and forward-looking statements include, but are not limited to, those risks discussed in the Company's filings with the U.S. Securities and Exchange Commission. Readers are cautioned that actual results (including, without limitation, the timing for and results of the Company's commercial and regulatory plans for Dario™ as described herein) may differ significantly from those set forth in the forward-looking statements. The Company undertakes 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.

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DarioHealth Corporate Contact
Mary Mooney
VP Marketing
+1-312-593-4280

DarioHealth Investor Relations Contact 
Kat Parella
Investor Relations Manager
kat@dariohealth.com 
+315-378-6922

Media Contact
Scott Stachowiak
scott.stachowiak@russopartnersllc.com
+1-646-942-5630

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SOURCE DarioHealth Corp.

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