Roche agreed to acquire PathAI for up to $1.05 billion to strengthen digital pathology capabilities used in biopharma workflows. The deal structure includes a $750 million upfront payment plus up to $300 million in milestone-linked payments, with closing expected in the second half of 2026 subject to regulatory approvals and antitrust conditions. Roche and PathAI have been partners since 2021 and expanded their collaboration in 2024 to develop AI-enabled companion diagnostic algorithms. With PathAI, Roche expects to scale Image Management System (IMS) workflows globally and integrate PathAI’s diagnostic and clinical trial support tools into its Diagnostics division. The acquisition also leverages PathAI’s prior FDA qualified AI tool for assessing fatty liver disease in trials (AIM-NASH). Roche said it aims to combine digital pathology software with its oncology diagnostic platforms to support biomarker discovery and translational research. This is a major consolidation move in AI diagnostics infrastructure—one that can accelerate how companion diagnostics are developed and deployed for trials and routine clinical decision-making.