Doximity (NYSE: DOCS), a San Francisco-based telehealth company serving over 80% of US physicians, has acquired Pathway Medical, a Montréal-based healthtech startup, for $63 million USD ($87M CAD).
The deal closed July 29, comprising $26M USD in cash and up to $37M USD in equity grants. All six Pathway employees — half of them physicians — will join Doximity.
AI-powered medical search engine
Founded in 2018, Pathway developed an AI-powered search engine of vetted medical content to help healthcare professionals diagnose and treat patients.
Key features:
- Sources from English-language, peer-reviewed journals produced by recognized medical groups
- Manual editorial review and “evidence grade” assignment
- User base of 1M+ registered professionals across 10,000 health facilities
“There’s a growing need for clinical tools that combine trusted evidence with the speed and adaptability of AI,” said Jon Hershon, Pathway CEO.
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Strategic fit for Doximity
Doximity will integrate Pathway’s dataset into its platform, which already offers:
- Physician networking and secure patient data sharing
- Medical news and research tools
- Schedule and administration features
- Telehealth visit capabilities
A joint AI-powered clinical reference tool is already in beta with thousands of US doctors.
Doximity says it will keep user search data private and compliant while leveraging Pathway’s underlying medical datasets.
“We found the best company at answering physicians’ questions using AI — and we didn’t have to go to Silicon Valley to find it,” said Jeff Tangney, Doximity CEO.
Backed by top Canadian investors
Before acquisition, the San Francisco based Company had raised $6.3M USD from Yamaha Motor Ventures, Desjardins Venture Capital, Amplify Capital, BoxOne Ventures, and Panache Ventures.
