Quest Finds its Path to AI in Cancer Diagnostics Through M&A

Quest Diagnostics has found its path to artificial intelligence in cancer diagnosis through M&A. The Secaucus NJ-based company said it was acquiring select assets of PathAI Diagnostics, the business of PathAI, for an undisclosed sum. Quest said the deal is expected to be completed in 2Q24.

At closing, PathAI Diagnostics' digitized laboratory in Memphis, TN will become Quest's AI and digital R&D and solutions center, 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 lab, which is separate and distinct from the diagnostic laboratory business. 

Under separate agreements, Quest will license PathAI's AISight digital pathology image management system and algorithm portfolio 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 subspecialized pathology services," said Kristie Dolan, Senior VP, Oncology, at 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 digitized laboratory in Memphis provides a platform for future growth."

Related:Quest to Reach Another Segment in Liquid Biopsy with New M&A

Quest’s rival, Labcorp recently announced a proposed acquisition. The Burlington, NC-based company said it was selected as the winning bidder to acquire Invitae’s assets for $239 million.

The proposed acquisition comes a few months after Invitae filed for bankruptcy.  Invitae specializes in genetic testing.