San Francisco-based Doximity has purchased Montréal-based healthtech startup Pathway Medical for $63 million USD ($87 million CAD), acquiring what it describes as “one of the best datasets in medicine.”
“There’s a growing need for clinical tools that combine trusted evidence with the speed and adaptability of AI,” stated Jon Hershon of Pathway.
The US telehealth company plans to integrate Pathway’s medical AI technology and clinical dataset into its platform for healthcare professionals. The acquisition, finalized on July 29, involved $26 million USD in cash and up to $37 million in equity grants. All six Pathway employees, half of whom are physicians, are joining Doximity.
Doximity CEO Jeff Tangney explained to CNBC that his team found “the best company at answering physicians’ questions using AI” without needing to visit Silicon Valley.
Pathway created an AI-powered search engine to provide vetted medical information that aids healthcare professionals in diagnosing and treating patients. Their policies ensure all content is sourced from English-language, peer-reviewed journals by recognized medical groups, with information manually reviewed and graded for evidence. The company reports over 1 million registered users across 10,000 healthcare facilities.
Pathway, founded in 2018, accumulated $6.3 million USD ($8.6 million CAD) from pre-seed and seed rounds led by Yamaha Motor Ventures, Desjardins Venture Capital, Amplify Capital, BoxOne Ventures, and Panache Ventures.
The acquisition by Doximity is expected to enhance its clinical reference capabilities through Pathway’s comprehensive peer-reviewed data. A joint product using Pathway’s technology is currently in beta testing with thousands of physicians, according to Tangney.
Amanda Cox, a Doximity spokesperson, mentioned that the company will own Pathway’s clinical dataset while maintaining the privacy and compliance of individual user search data.
Doximity, launched in 2010 as a “LinkedIn for doctors,” offers secure patient data sharing between healthcare institutions. Serving over 80% of US physicians, its services now include networking tools, medical news, schedule management, administration, and virtual visits. It reached a market capitalization of $12.2 billion USD following its 2021 IPO.
Medical AI tools have gained traction to help alleviate administrative burdens in strained healthcare systems. The Canada Health Infoway’s AI Scribe Program, launched in June, provides Canadian physicians with AI tools for documenting patient visits, with technology from companies like Well Health and MEDFAR.
Feature image courtesy of Doximity.