Quest Diagnostics, and PathAI have announced a multi-faceted collaboration designed to accelerate the adoption of digital and AI pathology innovations to improve quality, speed and efficiency in diagnosing cancer and other diseases. Under the terms of a definitive agreement, Quest will acquire select assets of PathAI Diagnostics, the business of PathAI that provides anatomic and digital pathology laboratory services.
The transaction is part of wide-ranging collaboration to combine Quest's oncology expertise and scale with PathAI's AI and digital pathology innovations to speed diagnosis, improve quality and reduce costs.
At closing, PathAI Diagnostics' state-of-the-art digitised laboratory in Memphis, Tennessee will become Quest's AI and digital R&D and solutions centre, supporting Quest's specialty pathology businesses, AmeriPath and Dermpath Diagnostics. PathAI will continue to support its biopharmaceutical clients with end-to-end clinical trial services capabilities at its biopharma laboratory, which is separate and distinct from the diagnostic laboratory business. The transaction is expected to be completed in the second quarter of 2024.
Under separate agreements, Quest will license PathAI's AISight digital pathology image management system to support its pathology laboratories and customer sites in the United States. The two entities may also pursue opportunities for Quest to aid PathAI's algorithm product development, drawing on Quest's deep pathology leadership. In addition, Quest will be a preferred provider for PathAI's biopharmaceutical clinical laboratory services.
"This transaction will enable Quest to dramatically ramp our capabilities in AI and digital pathology, building on our leadership in oncology and subspecialised pathology services," said Kristie Dolan, Senior Vice President, Oncology, Quest Diagnostics. "AI and digital technologies have tremendous potential to improve cancer care, and Quest has the know-how to scale and deliver innovations that are high quality, efficient and broadly accessible. PathAI has industry-leading expertise in AI pathology innovation, and their state-of-the-art laboratory in Memphis provides a platform for future growth."
Andy Beck MD PhD, Cofounder and CEO of PathAI added: "This strategic relationship represents a significant milestone for the anatomic pathology industry and marks a major turning point for digital pathology adoption in the US. The adoption of these technologies by an organisation with the scale and breadth of capabilities of Quest is a clear demonstration of how PathAI's cutting-edge solutions can help address the market's need for more efficient and high-quality pathology operations.”
Over time, Quest expects the transaction with PathAI will enable it to deploy flexible digital slide preparation and diagnostic and second opinion consultation services to health systems and other providers, both in the United States and, through its Global Diagnostic Network, overseas. The acquisition will also extend Quest's anatomic pathology services into comparatively more profitable areas, including dermatopathology as well as gastrointestinal and urological diseases. Provider customers of PathAI Diagnostics will benefit from access to Quest's industry-leading clinical test menu, broad health plan relationships and approximately 2,000 patient service centres in the US.
