Doximity on the New York Inventory Change for its preliminary public providing on June 24, 2021.
Supply: NYSE
Doximity is diving deeper into synthetic intelligence, asserting on Thursday the acquisition of startup Pathway Medical for $63 million.
Pathway has constructed an AI-powered medical reference software that medical doctors can use to ask questions on tips, medication and trials. Pathway’s solutions are synthesized from medical literature, and Doximity mentioned the Montreal-based startup has one of many largest structured datasets in drugs.
Doximity’s platform, which for years was described as LinkedIn for medical doctors, helps clinicians keep present on medical information, handle paperwork, discover referrals and perform telehealth appointments with sufferers. By means of its acquisition of Pathway, Doximity hopes medical doctors will even flip to the platform to reply their medical questions.
“We hunted excessive and low, and I feel we discovered the very best firm within the area at answering physicians’ questions utilizing AI, and it wasn’t in Silicon Valley,” Jeff Tangney, Doximity’s co-founder and CEO, advised CNBC in an interview.
The deal closed in late July for a money consideration of $26 million and as much as $37 million in extra fairness grants, Doximity mentioned.
Doximity’s integration with Pathway is properly underway, Tangney mentioned, and the businesses are testing a mixed product with 1000’s of medical doctors.
In the meantime, sufferers are turning with extra regularity to AI instruments and chatbots for solutions to health-related questions, a pattern that has doubtlessly troublesome penalties because of the probability of inaccurate suggestions.
Throughout a livestream on Thursday the place OpenAI introduced its new mannequin GPT-5, CEO Sam Altman mentioned well being queries are one of many greatest classes of ChatGPT utilization, in accordance with a publish on X, including that the brand new mannequin is “a lot better” in that space.
Doximity already has a free AI product, Doximity GPT, that medical doctors can use to generate insurance coverage letters and summarize affected person charts and experiences. Pathway will deliver extra “robustness” to the information that Doximity has on the again finish, mentioned Dr. Amit Phull, Doximity’s chief medical expertise officer.
“What Pathway brings to this social gathering or this marriage is that they’ve a really, very sturdy back-end information set that ties dosages to tips to literature to citations,” Phull advised CNBC in an interview.
Pathway’s mannequin scored 96% on the U.S. Medical Licensing Examination benchmark, Doximity mentioned, which medical doctors need to take to show that they perceive and may apply medical data.
Doximity, which went public in 2021, has seen its inventory climb 10% this 12 months after hovering 90% in 2024. The corporate has a market cap of about $11 billion.
Shares of Doximity rose about 6% in prolonged buying and selling on Thursday after the corporate reported fiscal first-quarter outcomes that topped estimates. Income jumped 15% from a 12 months earlier to $145.9 million, whereas analysts anticipated gross sales of $139.5 million, in accordance with LSEG. Earnings per share of 36 cents topped the 30-cent common estimate.
