At the end of January it became clear that one of the key mobile health industry partnerships would soon be coming to an end: AllOne Mobile offered Diversinet a $3 million break-up fee. Six months later after the two companies finally came to a settlement, AllOne Mobile has agreed to pay Diversinet $4 million. AllOne's parent company has also agreed to relinquish its almost 7 million shares in Diversinet. The partnership is now officially dissolved.
Diversinet provided security and encryption for AllOne mobile users’ health information and also enables the software to run across a number of mobile platforms. The AllOne-Diversinet partnership secured deals with the U.S. Army, Significa Insurance Group (Significa), Erin Group Administrators (EGA), Blue Cross NEPA and others. The company also has partnerships with Microsoft HealthVault, MedFlash, and Clickatell. With the exception of BCNEPA -- which is affiliated with AllOne's parent company -- Diversinet has maintained its relationships with the remaining partners.
This week MobiHealthNews interviewed Diversinet's CEO and Chairman Albert Wahbe to discuss the dissolution of the AllOne Mobile partnership, Diversinet's four target customer groups, and where the company goes from here.
"I am happy and excited about [the settlement] on behalf of the employees and our shareholders," Wahbe told MobiHealthNews. "I consider it the beginning of stage three for our company. Our first task was to secure the mobile infrastructure and architect secure mobile applications, which we did in our past experience in the banking world. We also successfully proceeded to take our application across all existing mobile technologies be they iPhone, Android, BlackBerry or PCs and others. We ensured these applications were secure and connected for the mobile world."
"Then we met AllOne Mobile," Wahbe said. "This was tremendous for us, especially because it introduced us to the healthcare industry and developed our healthcare application. Our partner decided to change their focus."
"Now we are in Phase Three. We are on our own. We have our new tagline -- Healthcare. Connected and Protected," Wahbe said. "We are up and running with pilots in Canada, we own all of our [intellectual property] now. We have all the financial resources we need."
Wahbe said that Diversinet will soon announce a new healthcare executive in charge of business development and sales. Soon after Diversinet will begin announcing new customers and pilots, Wahbe said.
Wahbe noted that Diversinet has four key customer groups: Payers/insurers, healthcare technology solutions providers, healthcare providers, and medical device companies. Medical device companies can leverage Diversinet's secure application platform to capture data from a connected medical device and send it to case managers, clinics, caregivers or patients' online portals.
While AllOne Mobile and Diversinet were working towards a settlement, Diversinet launched a new product called MobiSecure SMS, which Wahbe noted is intended to make Diversinet's applications available to those people who do not have data plans for their mobile phones. Diversinet's MobiSecure SMS covers the whole market when offered in tandem with its mobile data application.
"We feel very confident," Wahbe said. "We are in a very unique position. We are also very pleased that we now have the financial resources: $14 million in cash is very significant when you have no debts or obligations."
For more on the dissolution of AllOne Mobile and Diversinet's partnership, read the press release here