Doximity Acquires Pathway Medical For $63M
Doximity, a networking platform for healthcare professionals, announced the acquisition of Montreal-based Pathway Medical, a provider of AI-driven clinical decision support, in a deal worth $63 million. According to Doximity, the transaction closed on July 29 for $26 million in cash and up to $37 million in additional equity grants. Doximity offers digital tools for collaboration among colleagues, access to medical news and research, career and on-call schedule management, virtual patient visits, and assistance with documentation and administrative tasks, with its network including more than 80% of U.S. physicians and a growing number of nurse practitioners, physician assistants, and pharmacists.
Pathway Medical’s platform delivers clinicians quick answers to medical questions, serving licensed medical doctors, residents, students, and other healthcare professionals. “We’re thrilled to welcome the Pathway team to Doximity,” said Jeff Tangney, Doximity cofounder and CEO. “They’ve painstakingly built one of the best datasets in medicine, and it’s going to take our clinical reference capabilities to an entirely new level.” Pathway CEO Jon Hershon emphasized the need for clinical tools that merge trusted evidence with AI’s speed and adaptability, noting that hundreds of thousands have registered for Pathway and thousands pay $300 annually for its premium service. He added that, with Doximity, the experience will now reach millions for free, integrated directly into tools clinicians already use at the point of care.
The acquisition follows Doximity’s 2022 purchase of Amion, an on-call physician scheduling and messaging app, for $53.5 million in cash plus up to $24 million in performance-based earnout and around $5 million in restricted stock units for some joining employees.
Doximity, which went public in 2021 and trades on Nasdaq under the ticker DOC at $61.83 per share, has continued to expand its platform. However, Pathway Medical has also faced legal challenges; in February, OpenEvidence, an AI-enabled medical research aggregation platform, sued Pathway in Massachusetts federal court, alleging it engaged in “brazen efforts” over several months to compromise OpenEvidence’s AI platform using stolen credentials and malicious inputs, steal trade secrets, and develop a “copycat” platform.
The complaint claimed Pathway executed dozens of “prompt injection” cyberattacks—malicious prompts disguised as legitimate inputs—to bypass generative AI safeguards and extract proprietary information. In June, Pathway asked the court to dismiss the lawsuit, arguing the claims were speculative attempts to stifle competition. According to LAW360, Pathway denied stealing or using secret information, asserting it merely accessed OpenEvidence’s website and chatbot—a common business practice it claims OpenEvidence has also engaged in.
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