DarioHealth (Nasdaq:DRIO) announced today that it closed a senior secured term loan facility worth up to $50 million.
OrbiMed, a leading healthcare investor, will provide non-dilutive capital to fund the continued development of New York-based DarioHealth’s digital health platform for managing chronic diseases, including diabetes.
According to a news release, the five-year, $50 million facility includes a $25 million loan at closing and an additional $25 million available for a future draw before June 30, 2023, subject to Dario achieving certain revenue thresholds.
“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,” DarioHealth CEO Erez Raphael said in the release. “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 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. 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.”