Autonomous AI platform Digital Diagnostics, previously known as IDx, announced that it has purchased 3Derm Systems in a move that would expand its reach into the dermatology space.
Digital Diagnostics got its start as an AI tool for diabetic retinopathy, but it’s now looking to expand its specialties. That is where the company is making bets on 3Derm.
Boston-based 3Derm specializes in providing telemedicine for the dermatology space. Its first product is dubbed 3Derm Triage. Currently users are able to connect to a dermatologist. The startup has a second platform for skin cancer detection called 3DermSpot, which is being prepped for FDA clearance. The 3DermSpot was granted an FDA Breakthrough Device designation back in January.
WHY IT MATTERS
Digital Diagnostics is pitching this acquisition as a way to grow its business. The companies have also presented this as a way to help ease the physician burden and cut medical costs, especially during the coronavirus pandemic.
"By using Digital Diagnostics' autonomous AI platform, 3DermSpot decreases the time it takes to put their life saving device in the hands of frontline care providers," John Bertrand, CEO of Digital Diagnostics, said in a statement. "Expanding the specialties our products cover allows our customers to use our platform as their one stop shop for autonomous AI diagnostics at the point-of-care.”
THE LARGER TREND
In 2018 Digital Diagnostics landed a De Novo to market its AI-based software system for the autonomous detection for diabetic retinopathy in adults who have diabetes named IDx-DR.
Just a few months later it scored $33 million in Series A funding led by 8VC, with participation from Optum Ventures Alpha Edison and Heritage Provider Network.
Founded in 2012, 3Derm has also tapped into venture funding, landing $1.66 million in 2016, and a total of $5 million.
ON THE RECORD
"Improving access and empowering frontline care providers was core to our mission at 3Derm," Liz Asai, former CEO and cofounder of 3Derm Systems, and now VP of dermatology for Digital Diagnostics, said in a statement. "We are thrilled to continue our work as part of a larger organization focused on doing AI the right way, and that offers a broad commercial platform.”
