Roche (OTC:RHHBY) said Wednesday it will acquire U.S.-based digital pathology and AI company PathAI in a deal worth up to $1.05 billion, including milestone payments.
The acquisition will expand Roche's digital pathology and AI diagnostics capabilities. PathAI is set to join its diagnostics division once the deal closes later this year.
Deal Builds On Existing Partnership
Under the agreement, Roche will pay $750 million upfront, with additional milestone payments of up to $300 million.
Roche and PathAI first partnered in 2021 and expanded their collaboration in 2024 to develop AI-enabled companion diagnostic algorithms.
The company said the acquisition will enhance its digital pathology portfolio by integrating PathAI's Image Management System, AISight, with Roche's oncology diagnostics platforms.
Digital pathology converts tissue samples on slides into high-resolution digital images, enabling pathologists to use AI-powered tools to support diagnostic workflows and potentially speed up patient results.
Focus On Precision Medicine And Biomarker Discovery
PathAI's AI-driven tools also support clinical trials and translational research. Roche said these capabilities will complement its companion diagnostics expertise and strengthen its services for biopharma companies.
The combined technologies are expected to support the discovery of new biomarkers, potential drug targets, and additional diagnostic tools, helping accelerate the shift toward personalized healthcare.
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