New York Stock Exchange’s Doximity made its initial public offering on June 24, 2021.
Source: New York Stock Exchange
Doximity In-depth research AIannounced Thursday that it had acquired Entrepreneurship Route Medical for $63 million.
Pathway has built an AI-powered clinical reference tool that doctors can use to ask questions about guidelines, medications, and trials. The answer to the pathway is synthesized from the medical literature, and Doximity says the Montreal-based startup is one of the largest structured data sets in medicine.
Doximity’s platform, described for years as LinkedIn for doctorshelp clinicians stay up to date on medical news, manage paperwork, find recommendations and conduct telemedicine appointments with patients. Doximity hopes to use the acquisition method, and hopes that doctors can also turn to the platform to answer their clinical questions.
“We hunt high and low, and I think we found the best company when answering doctors’ questions, and it’s not in Silicon Valley,” Jeff Tangney, co-founder and CEO of Doximity, told CNBC in an interview.
Doximity said the deal ended in late July, considering $26 million in cash considerations and up to $37 million in additional equity grants.
Tangney said Doximity and Pathway integration is underway and the two companies are testing the merged product with thousands of doctors.
Doximity already has a free AI product, Doximity GPT, which doctors can use to generate insurance letters and summarize patient charts and reports. Doximity’s chief clinical experience officer Dr. Amit Phull said Pathway will bring more “robustness” to Doximity’s backend.
“What the pathway brings to this party or this marriage is that they have a very, very powerful backend dataset that connects dosage to a guide to literature and literature,” Phull told CNBC in an interview.
Doximity says Pathway’s model scores 96% on the U.S. Medical Licensing Exam benchmark, and doctors must take the proof that they understand and can apply medical knowledge.
Doximity was sold publicly in 2021 and shares rose 8% this year after soaring 90% in 2024. The company has a market capitalization of about $11 billion.
Doximity is holding a quarterly conference call with investors to discuss its first quarter results Thursday at 5 p.m. ET.
