Quest Diagnostics to Acquire PathAI Diagnostics to Accelerate AI and Digital Pathology Adoption in Cancer Diagnosis

Quest Diagnostics, the testing giant, and PathAI, a global provider of artificial intelligence-powered technology for pathology, have announced a comprehensive collaboration aimed at accelerating the adoption of digital and AI pathology innovations to enhance the quality, speed, and efficiency of diagnosing cancer and other diseases.

As per a definitive agreement, Quest will acquire select assets of PathAI Diagnostics, the business division of PathAI that offers anatomic and digital pathology laboratory services. Upon completion, PathAI Diagnostics’ cutting-edge digitized laboratory in Memphis, Tennessee will transition to become Quest’s AI and digital R&D and solutions center, supporting Quest’s specialty pathology businesses, AmeriPath and Dermpath Diagnostics. Meanwhile, PathAI will continue to provide end-to-end clinical trial services for its biopharmaceutical clients through its separate biopharma lab. The transaction is slated for completion in the second quarter of 2024.

Additionally, Quest will license PathAI’s AISight digital pathology image management system to bolster its pathology laboratories and customer sites across the United States. The two entities may explore opportunities for Quest to assist in PathAI’s algorithm product development, leveraging Quest’s extensive pathology expertise. Quest will also serve as the preferred provider for PathAI’s biopharmaceutical clinical laboratory services.

Kristie Dolan, Senior Vice President of Oncology at Quest Diagnostics, expressed enthusiasm about the collaboration, highlighting its potential to significantly enhance cancer care through AI and digital pathology innovations. Dolan emphasized Quest’s leadership in oncology and subspecialized pathology services and PathAI’s expertise in AI pathology innovation, underscoring the transformative impact this partnership can have on pathology operations.

Mark Gardner, Senior Vice President of Molecular Genomics and Oncology at Quest Diagnostics, echoed Dolan’s sentiments, emphasizing the importance of the collaboration in accelerating the adoption of digitization and artificial intelligence in pathology. Gardner highlighted Quest’s commitment to serving patients across the entire continuum of oncology care, from diagnosis to therapy selection and patient monitoring.

Andy Beck, MD PhD, co-Founder and CEO of PathAI, hailed the collaboration as a significant milestone for the anatomic pathology industry and a major turning point for digital pathology adoption in the U.S. He emphasized the potential of PathAI’s cutting-edge solutions to address the market’s need for more efficient and high-quality pathology operations.

The collaboration between Quest and PathAI comes at a critical time, with the American Cancer Society predicting that 2024 will mark the first year the United States expects over 2 million new cases of cancer. By leveraging digital pathology and AI, Quest and PathAI aim to streamline diagnostic processes, facilitate collaboration among pathologists, and address the increasing workload faced by the healthcare industry.

Digital pathology enables the creation of digital images of glass slides, allowing for secure electronic sharing among pathologists and reducing the need for physical transportation of tissue samples. It also extends access to expert consults to areas where pathologists are scarce, such as rural America and international regions. Additionally, AI enhances digital pathology by identifying patterns in digitized images, aiding pathologists in more accurate diagnosis.

Quest’s long history of strategic AI and automation deployment positions the company as a leader in leveraging technology to improve healthcare outcomes. The collaboration with PathAI builds on Quest’s expertise and scale in cancer care, with approximately 400 pathologists serving top health systems in the U.S.