Doximity acquires AI startup Pathway Medical for $63 million

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

Pathway has built an AI-powered clinical reference tool that doctors can use to ask questions on guidelines, drugs and trials. Pathway’s answers are synthesized from medical literature, and Doximity said the Montreal-based startup has certainly one of the most important structured datasets in medicine. 

Doximity’s platform, which for years was described as LinkedIn for doctors, helps clinicians stay current on medical news, manage paperwork, find referrals and perform telehealth appointments with patients. Through its acquisition of Pathway, Doximity hopes doctors may even turn to the platform to reply their clinical questions.

“We hunted high and low, and I believe we found one of the best company within the space at answering physicians’ questions using AI, and it wasn’t in Silicon Valley,” Jeff Tangney, Doximity’s co-founder and CEO, told CNBC in an interview. 

The deal closed in late July for a money consideration of $26 million and as much as $37 million in additional equity grants, Doximity said. 

Doximity’s integration with Pathway is well underway, Tangney said, and the businesses are testing a combined product with hundreds of doctors. 

Meanwhile, patients are turning with more regularity to AI tools and chatbots for answers to health-related questions, a trend that has potentially troublesome consequences as a consequence of the likelihood of inaccurate recommendations.

During a livestream on Thursday where OpenAI announced its latest model GPT-5, CEO Sam Altman said health queries are certainly one of the most important categories of ChatGPT usage, in response to a post on X, adding that the brand new model is “significantly better” in that area.

Doximity already has a free AI product, Doximity GPT, that doctors can use to generate insurance letters and summarize patient charts and reports. Pathway will bring additional “robustness” to the information that Doximity has on the back end, said Dr. Amit Phull, Doximity’s chief clinical experience officer.  

“What Pathway brings to this party or this marriage is that they’ve a really, very robust back-end data set that ties dosages to guidelines to literature to citations,” Phull told CNBC in an interview. 

Pathway’s model scored 96% on the U.S. Medical Licensing Examination benchmark, Doximity said, which doctors should take to prove that they understand and might apply medical knowledge.

Doximity, which went public in 2021, has seen its stock climb 10% this yr after soaring 90% in 2024. The corporate has a market cap of about $11 billion.

Shares of Doximity rose about 6% in prolonged trading on Thursday after the corporate reported fiscal first-quarter results that topped estimates. Revenue jumped 15% from a yr earlier to $145.9 million, while analysts expected sales of $139.5 million, in response to LSEG. Earnings per share of 36 cents topped the 30-cent average estimate.