California company buys Montreal's small medical practice for $63 million
Montreal-Based Pathway Medical Acquired by Doximity for $63 Million
Pathway Medical, a Montreal-based AI-assisted medicine company, has been acquired by Doximity, a San Francisco-based telehealth and networking platform for healthcare professionals, in a deal valued at $63 million.
Founded approximately seven years ago by physicians associated with the Mila AI Institute, Pathway Medical specializes in AI-driven clinical decision support and evidence-based clinical references. The company has developed one of the largest structured medical datasets covering guidelines, drugs, and landmark medical trials across 39 specialties. This dataset is meticulously curated, with all content manually reviewed and assigned evidence grades based on peer-reviewed medical literature. Pathway's AI platform achieved a record-breaking 96% score on the U.S. Medical Licensing Examination (USMLE) benchmark, reflecting high clinical accuracy.
The company has hundreds of thousands of registered users worldwide, including licensed doctors, residents, and students, with thousands subscribing to a $300 annual premium service.
Doximity, a leading digital platform for medical information and care management, is excited to welcome Pathway Medical into its fold. The acquisition aims to integrate Pathway’s advanced AI clinical reference platform and extensive medical dataset into Doximity’s suite of healthcare tools, including Doximity GPT—a generative AI for administrative tasks—and Doximity Scribe for clinical documentation. This merger is expected to expand Doximity’s clinical reference capabilities, making AI-powered medical knowledge accessible to millions of clinicians for free at the point of care via tools they already use.
The deal consists of $26 million in cash and up to $37 million in equity grants, closing on July 29, 2025. All six Pathway employees, half of whom are physicians, have joined Doximity. The remaining $37 million (approximately CAD$50.5 million) will be paid in newly issued shares by the acquirer, Doximity.
Doximity's latest financial results show assets of $1.26 billion, annualized revenue of $570 million, and net income of $223 million, significantly higher than five years ago. The acquisition reflects a strategic move by Doximity to expand its AI capabilities, merging trusted medical evidence with AI speed and adaptability to better assist healthcare professionals in diagnosis, treatment, and administrative workflow.
Key Points:
- Pathway Medical, a Montreal-based AI-assisted medicine company, has been acquired by Doximity for $63 million.
- Pathway Medical specializes in AI-driven clinical decision support and evidence-based clinical references.
- The company has developed one of the largest structured medical datasets covering guidelines, drugs, and landmark medical trials across 39 specialties.
- The acquisition aims to integrate Pathway’s advanced AI clinical reference platform and extensive medical dataset into Doximity’s suite of healthcare tools.
- The deal consists of $26 million in cash and up to $37 million in equity grants, closing on July 29, 2025.
- Doximity's latest financial results show assets of $1.26 billion, annualized revenue of $570 million, and net income of $223 million.
- The acquisition reflects a strategic move by Doximity to expand its AI capabilities.
- The acquisition of Pathway Medical, a Montreal-based AI-assisted medicine company, by Doximity signifies a strategic move by the latter to expand its AI capabilities in the health-and-wellness sector.
- Doximity, a leading digital platform for medical information, is seeking to merge Pathway's advanced AI clinical reference platform into its suite of healthcare tools, potentially impacting the finance sector through the streamlining of administrative tasks.
- With this acquisition, Doximity, a San Francisco-based telehealth and networking platform, aims to make AI-powered medical knowledge accessible to millions in the technology industry, thereby enhancing the overall efficiency and quality of healthcare services.
