Doximity at the New York Stock Exchange for its initial public offering on June 24, 2021.
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 about guidelines, drugs and trials. Pathway's answers are synthesized from medical literature, and Doximity said the Montreal-based startup has one of the largest 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 carry out telehealth appointments with patients. Through its acquisition of Pathway, Doximity hopes doctors will also turn to the platform to answer their clinical questions.
"We hunted high and low, and I think we found the best company in 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 cash consideration of $26 million and up to $37 million in additional equity grants, Doximity said.
Doximity's integration with Pathway is well underway, Tangney said, and the companies are testing a combined product with thousands of doctors.