Israeli startup DreaMed Diabetes revealed that it had received $3 million and inked various agreements with health systems and businesses.
DreaMed Diabetes creates the endo.digital platform, which offers AI-based suggestions for the management of persons with diabetes.
The funding round was headed by venture capital firm eHealth Ventures, which focuses on early-stage investments in digital health. The funds raised is in addition to the $9.4 million in equity financing and the roughly $20 million the company earned in grants and other non-diluted funding sources.
Despite CEO and co-founder Eran Atlas being called up for six months of reserve duty as a military officer in the IDF on October 8, DreaMed was still able to close the financing. He and his group persisted in advocating several tactical actions to further the commercialization of DreaMed’s solution in the context of the war and military duty.
Abbott, a top diabetes medical device manufacturer, and DreaMed recently inked a data integration agreement following DreaMed’s sixth FDA approval for the endo.digital platform. Under this collaboration, patients can remotely monitor their FreeStyle Libre CGM data by easily connecting it to the endo.digital platform through the cloud. The patient’s healthcare professional receives tailored insulin therapy suggestions from the system.
Apart from this collaboration, DreaMed has concluded a number of agreements with well-known health systems in the United States after pilot programs were successfully concluded.
The largest arrangement was made with Yale New Haven Health, which included the expansion of DreaMed’s services to its family medicine clinics as part of a complete commercial partnership.
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Additionally, DreaMed inked a development and licensing deal with a multinational corporation, which would quicken the adoption of its medicines on the international market. Due to these events, DreaMed, which presently employs 20 people, is planning to reopen its U.S. branch and is hiring more employees.
“The last two years have been very challenging for the Israeli high-tech industry as a whole, and for the field of digital health in particular,” said Atlas. “We managed to overcome the difficulties of the coronavirus, the economic crisis and the war, and we are preparing for a large-scale deployment in the U.S. and then to other countries, with a significant revenue stream and the raising of new capital. We have the backing of the two leading Israeli HMOs: Clalit Health Service, which supported the technological development, and Maccabi Health Fund, which is one of the partners of the eHealth Ventures fund. The partnerships and commercial agreements are a jumping off point for the company’s next stages of growth.”
Building on this achievement, DreaMed focused on a next major diabetes care concern. There are not enough endocrinologists to treat the 540 million individuals who have diabetes worldwide—there is only one endocrinologist for every 6,000 patients.
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Because of this, over 80% of people with diabetes (both type 1 and type 2) do not have access to specialized care, which results in inadequate management. In order to solve this, DreaMed created the endo.digital system, which leverages AI to provide medical professionals suggestions for improving patients’ insulin therapy regimens.
About DreaMed Diabetes
DreaMed has committed itself to creating tools for decision-making in the field of managing diabetes. They are the first and only business in the world to be approved by the FDA to use data from insulin pumps and CGM/SMBG (continuous glucose monitoring/self-monitoring of blood glucose) in a decision support system.
