Doximity buys Pathway Medical for $63 million to help doctors get AI-powered answers

Doximity is making significant strides in the realm of artificial intelligence, having announced its acquisition of Pathway Medical for $63 million. This Montreal-based startup has developed an advanced AI-powered clinical reference tool designed to assist physicians in obtaining answers about medical guidelines, pharmaceuticals, and clinical trials. The technology utilized by Pathway synthesizes information from extensive medical literature, positioning it as a leader in structured medical datasets. With this acquisition, Doximity aims to enhance its platform, which has been likened to LinkedIn for healthcare professionals, enabling clinicians to stay informed about medical developments, manage administrative tasks, seek referrals, and conduct telehealth sessions. Jeff Tangney, Doximity's co-founder and CEO, emphasized the thorough search for the right partner, stating, "We hunted high and low, and I think we found the best company in the space at answering physicians' questions using AI, and it wasn't in Silicon Valley." The acquisition was finalized in late July, involving an immediate cash payment of $26 million, along with potential equity grants totaling up to $37 million. The integration of Pathway's capabilities is already in progress, with Doximity testing a combined offering with thousands of healthcare providers. Doximity also currently offers a free AI tool, Doximity GPT, which assists doctors in generating insurance letters and summarizing patient records. Dr. Amit Phull, Doximity's Chief Clinical Experience Officer, highlighted the added value Pathway brings, noting its robust backend dataset that connects dosages with clinical guidelines and citations. Pathway's AI model has demonstrated impressive performance, achieving a 96% score on the U.S. Medical Licensing Examination benchmark, a crucial test for medical professionals. Since going public in 2021, Doximity's stock has experienced a notable 8% increase this year, building on a remarkable 90% rise in 2024. The company currently holds a market capitalization of approximately $11 billion. Investors will hear more about Doximity's fiscal first-quarter results during a quarterly conference call scheduled for Thursday at 5 p.m. ET.