Quest Diagnostics to acquire certain assets of PathAI

Quest Diagnostics and PathAI 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. At closing, PathAI Diagnostics’ state-of-the-art 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. 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. 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.