Doximity Buys Pathway Medical for $63M, Expands AI Suite for Physicians
Doximity, a San Francisco based digital health company, has acquired Montreal-based Pathway Medical in a deal valued at up to $63 million to strengthen its healthcare artificial intelligence capabilities. The purchase includes $26 million in cash and up to $37 million in equity grants, closing on July 29, 2025. The acquisition follows the company’s release of free AI-powered tools for verified U.S. physicians, including its recently launched Doximity Scribe.
Doximity is a professional medical network that offers secure communication, telehealth, and workflow tools such as digital faxing, mobile calling with office number display, and patient care collaboration across devices.
For its fiscal Q1 2026, Doximity reported revenue of $146 million, up 15% year over year, and adjusted EBITDA of $79.8 million. Net income was $53.3 million, compared with $41.4 million a year earlier. The company raised full-year revenue guidance to $628–$636 million and expects Q2 revenue of $157–$158 million.
Pathway, co-founded by Jonathan Hershon St-Jean, operates a clinical reference platform built on a large structured medical dataset covering guidelines, drugs, and landmark trials across 39 specialties. Its cross-linked architecture is designed to let AI deliver precise answers, account for complex drug interactions, and weigh medical evidence based on the source type.
Pathway’s AI model scored 96% on the U.S. Medical Licensing Examination benchmark and has several hundred thousand users worldwide, with thousands paying an annual subscription of $300. Founded by physicians from the Mila AI Institute, the seven-year-old company has a six-person team.
Doximity has integrated Pathway’s data and algorithms into Doximity GPT, an AI tool for administrative automation such as generating and faxing prior authorization and appeal letters. The combined system is now in testing with thousands of physicians. Alongside Pathway’s reference engine, Doximity’s AI portfolio now includes:
- Doximity Scribe – a HIPAA-compliant, real-time clinical documentation tool that processes visit audio securely without storing recordings. It runs on desktop and mobile, works in person and for telehealth, and integrates with the Doximity Dialer platform.
- Doximity GPT – a generative AI interface for drafting insurer correspondence, disability letters, patient instructions, and other clinical documentation.
All AI tools are free to U.S. physicians, nurse practitioners, physician assistants, and medical students with verified accounts. Free onboarding support is also offered to free and charitable medical clinics.
Doximity reports that its network includes more than 80% of U.S. physicians, a reach it says could support distribution of its AI offerings. Company data show AI tool usage grew more than fivefold year over year in the latest quarter, with over 630,000 providers using its workflow tools and more than 1 million active newsfeed users.
The company’s leadership includes alumni of Cleveland Clinic, Stanford University, UCSF, and Medscape, with co-founder and CEO Jeff Tangney previously founding Epocrates and co-founder Dr. Nate Gross founding digital health venture fund Rock Health. Investors include Emergence Capital Partners, InterWest Partners, T. Rowe Price, and Morgan Stanley.
The Pathway acquisition brings the company into clinical decision support at the point of care, alongside providers such as OpenEvidence, Microsoft’s Nuance DAX, Abridge, Suki, Nabla, and Ambience.
Topics: Startups & Deals
