Summary: Quest Diagnostics and PathAI have formed a multi-faceted collaboration to advance the adoption of AI and digital pathology technology for the diagnosis of cancer and other diseases.

Takeaways:

  1.  Quest will acquire select assets of PathAI Diagnostics, the business of PathAI that provides anatomic and digital pathology laboratory services.
  2. Quest says it will license PathAI’s AISight digital pathology image management system to support its pathology laboratories and customer sites in the United States.
  3. By integrating PathAI’s technologies, Quest aims to improve the entire continuum of oncology care—from diagnosis and prognosis to therapy selection and patient monitoring. 

Quest Diagnostics and PathAI, a provider of AI-powered technology for pathology, 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.

What a Quest and PathAI Collaboration Will Look Like

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. At closing, PathAI Diagnostics’ digitized laboratory in Memphis, Tennessee will become Quest’s AI and digital R&D and solutions center, supporting Quest’s specialty pathology businesses, AmeriPath and Dermpath Diagnostics, according to the companies. 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. The transaction is expected to be completed in the second quarter of 2024.

Goals in Digital Pathology

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 subspecialized pathology services,” says 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 digitized laboratory in Memphis provides a platform for future growth.” 

Further reading: PathAI Diagnostics Unveils AI-Assisted LDT for Liver Diseases

Improving Cancer Diagnostics

According to the American Cancer Society, 2024 will be the first year that the United States expects more than 2 million new cases of cancer. The global cancer burden is expected to reach 28.4 million cases in 2040, compared to 19.3 million in 2020, according to the International Agency for Research on Cancer.

“At Quest Diagnostics, we are committed to maximizing patient impact from every precious sample,” says Mark Gardner, senior vice president, Molecular Genomics and Oncology, Quest Diagnostics. “The relationship with PathAI and acquisition of PathAI Diagnostics will enable us to rapidly accelerate the adoption of digitization and artificial intelligence for our market leading pathology offering, and will therefore strengthen our capability to serve patients across the entire continuum of oncology care, from diagnosis, to prognosis, to therapy selection and patient monitoring.”

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, the companies say. 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 centers in the U.S.

“This strategic relationship represents a significant milestone for the anatomic pathology industry and marks a major turning point for digital pathology adoption in the U.S. The adoption of these technologies by an organization 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,” says Andy Beck, MD PhD, co-Founder and CEO of PathAI. “The PathAI Diagnostics laboratory in Memphis will allow Quest to accelerate its digital journey with an already digitized laboratory.”

Further reading: Quest Adds New Blood Biomarker to Alzheimer’s Testing Portfolio