DarioHealth, a digital therapeutics company specializing in chronic conditions, is buying Physimax Technologies Ltd., a startup that uses artificial intelligence to carry out musculoskeletal functional screening and predict injury risk, according to a news release Thursday.
The company will issue up to 256,660 shares of common stock and pay $500,000 in cash to acquire Physimax. DarioHealth will also assume more than $1 million in liabilities from Physimax as part of the deal.
"We are committed to bringing cutting-edge technologies to our suite of offerings to enhance the user experience and improve outcomes. We believe that Physimax's technology strengthens our ability to scale highly effective treatments for musculoskeletal health and reduce the burden on Dario professional human support. Physimax's technology supports rapid growth of membership without the traditional limitations of MSK care delivered by humans," said DarioHealth CEO Erez Raphael said in a news release.
The latest acquisition could help DarioHealth accomplish its goal of becoming a one-stop shop for digital therapeutics to manage chronic conditions like hypertension, diabetes and musculoskeletal disorders.
Providers, health plans and employers are increasingly looking to partner with companies that can offer integrated solutions to lower healthcare costs, boost outcomes and improve the patient experience. While single-point solutions can often help address an issue, they can also worsen the existing fragmentation in the healthcare delivery system.
Venture capitalists invested almost $31 billion in digital health in 2021, according to data from Digital Health Business & Technology. That's more than double the nearly $15 million raised in 2020.