Roche agreed to acquire PathAI for up to $1.05 billion to expand its digital pathology capabilities and accelerate AI adoption in companion diagnostics. The deal structure calls for a $750 million upfront payment plus potential milestones of up to $300 million tied to achievements. PathAI’s platform includes software and workflow tools designed to connect tissue image analysis with clinical and translational use cases, including support for clinical trial work. Roche said it intends to merge PathAI into its Diagnostics division and scale the combined platform globally. Roche and PathAI have partnered since 2021 and expanded their collaboration in 2024 to include AI-enabled companion diagnostic algorithm development. The acquisition is also positioned as a follow-on to PathAI’s FDA milestone earlier this year, when the agency qualified a digital pathology tool for fatty liver disease trial evaluation.