Boston-based PathAI is adding a suite of laboratory testing services to its portfolio of artificial intelligence-powered pathology tools through its acquisition of Poplar Healthcare Management.

Poplar Healthcare is a Memphis, Tennessee-based laboratory services provider to a nationwide client base of gastroenterologists, dermatologists, oncologists, urologists, gynecologists and their patients.

By combining the two companies, PathAI’s diagnostics division will now include Poplar's facilities, management team and employees – all of which will remain based in Memphis. The two will also join their services to digitize the Poplar laboratory workflow with PathAI's image analysis and AI capabilities and to give PathAI traditional laboratory services at scale.

"Our mission at PathAI is to improve patient outcomes with AI-powered pathology and the investment in Poplar allows us to advance that mission by enhancing our ability to provide pathologists with PathAI diagnostic products to support patient care.'' Dr. Andy Beck, cofounder and CEO of PathAI, said in a statement. 

"Poplar is a top tier lab with a dedicated team known for their accuracy of diagnosis and turnaround time. PathAI's investments in digital pathology and artificial intelligence will further enhance Poplar's value proposition to providers across the United States."

WHY IT MATTERS

Digital tools including AI are becoming more prevalent in healthcare as their potential to advance medicine gets uncovered.

Areas like pathology and laboratory services are particularly ripe for technological development for its ability to aid in imaging, diagnosing and understanding disease biology according to Laboratory Investigation.

Experts anticipate that laboratories will increasingly add these digital capabilities to improve their workflow and clinical processes, according to Diagnostic Histopathology. This collaboration between PathAI and Poplar follows this trend.

"We looked for a partner that values our reputation for accuracy and reliability, appreciates the dedication and skill of our employees, and shares our passion to help clinicians continuously improve pathology services for patients,” Jim Sweeney, CEO of Poplar, said in a statement.

“Most importantly, we looked for a partner interested in transforming pathology, leveraging technology and AI to enhance pathologists' work and better equip them to serve patients and clinicians. We found the ideal partner in PathAI."

THE LARGER TREND

Back in May, PathAI scored $165 million in a Series C funding round co-led by D1 Capital Partners and Kaiser Permanente. At the time, the company shared its plans to seek new partnerships with pharmaceutical and diagnostic organizations.

Others in the digital pathology space include Proscia, which landed $23 million in Series B funding last December; Paige, which got an additional $15 million from Goldman Sachs Merchant Banking Division last summer; and Deep Lens, which brought in a $13.65 million Series A round in 2019.