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

Doximity is diving deeper into artificial intelligence, announcing connected Thursday the acquisition of startup Pathway Medical for $63 million. 

Pathway has built an AI-powered objective notation instrumentality that doctors tin usage to inquire questions astir guidelines, drugs and trials. Pathway's answers are synthesized from aesculapian literature, and Doximity said the Montreal-based startup has 1 of the largest structured datasets successful medicine. 

Doximity's platform, which for years was described arsenic LinkedIn for doctors, helps clinicians enactment existent connected aesculapian news, negociate paperwork, find referrals and transportation retired telehealth appointments with patients. Through its acquisition of Pathway, Doximity hopes doctors volition besides crook to the level to reply their objective questions.

"We hunted precocious and low, and I deliberation we recovered the champion institution successful the abstraction astatine answering physicians' questions utilizing AI, and it wasn't successful Silicon Valley," Jeff Tangney, Doximity's co-founder and CEO, told CNBC successful an interview. 

The woody closed successful precocious July for a currency information of $26 cardinal and up to $37 cardinal successful further equity grants, Doximity said. 

Doximity's integration with Pathway is good underway, Tangney said, and the companies are investigating a combined merchandise with thousands of doctors. 

Doximity already has a escaped AI product, Doximity GPT, that doctors tin usage to make security letters and summarize diligent charts and reports. Pathway volition bring further "robustness" to the information that Doximity has connected the backmost end, said Dr. Amit Phull, Doximity's main objective acquisition officer.  

"What Pathway brings to this enactment oregon this matrimony is that they person a very, precise robust back-end information acceptable that ties dosages to guidelines to lit to citations," Phull told CNBC successful an interview. 

Pathway's exemplary scored 96% connected the U.S. Medical Licensing Examination benchmark, Doximity said, which doctors person to instrumentality to beryllium that they recognize and tin use aesculapian knowledge.

Doximity, which went nationalist successful 2021, has seen its banal ascent 8% this twelvemonth aft soaring 90% successful 2024. The institution has a marketplace headdress of astir $11 billion.

Doximity is holding its quarterly league telephone with investors to sermon its fiscal first-quarter results connected Thursday astatine 5 p.m. ET.