Leidos invests $10 million in AI disease detection with University of Pittsburgh

Rhea-AI Summary

Leidos (NYSE: LDOS) has announced a $10 million investment in a five-year collaboration with the University of Pittsburgh's Computational Pathology and AI Center of Excellence (CPACE). The partnership aims to accelerate the development of AI-powered tools for disease detection and management, particularly focusing on heart disease and cancer.

The collaboration will establish a world-class research hub through CPACE's Digital Pathology Research Center, develop digital healthcare solutions, and accelerate global impact through AI-powered pathology solutions across public and private healthcare sectors. Key objectives include exploring new imaging methods, advanced scanning technologies, and improved medical image analysis techniques.

The initiative also emphasizes workforce development through educational programs, industry-focused best practices, annual symposiums, and internship opportunities. Leidos brings over 25 years of experience operating the National Cancer Institute's Frederick National Laboratory for Cancer Research and two decades of AI application expertise in healthcare, national security, and energy sectors.

Positive

• Strategic $10M investment in AI healthcare technology development
• Potential commercialization opportunities in public and private healthcare sectors
• Leverages existing expertise from 25+ years of cancer research laboratory operations
• Expansion into growing AI-powered diagnostic solutions market

Negative

• Significant upfront investment with long-term ROI timeline
• Research and development outcomes uncertainty
• Regulatory approval requirements may delay commercialization

Insights

Healthcare Technology Analyst

Leidos' $10M AI healthcare partnership with University of Pittsburgh enhances their competitive position in the growing healthcare AI market.

Leidos' $10 million investment in AI disease detection represents a strategic expansion of their healthcare technology capabilities through a partnership with the University of Pittsburgh's Computational Pathology and AI Center of Excellence. This five-year collaboration builds upon Leidos' 25+ years of experience operating the National Cancer Institute's Frederick National Laboratory and their two decades applying AI across multiple sectors.

While the $10 million investment is relatively modest for a company with a $18.3 billion market cap (0.05% of market value), the strategic implications are significant. The partnership targets the rapidly growing healthcare AI market with specific focus on digital pathology and diagnostic tools for conditions like heart disease and cancer.

The collaboration includes three valuable components beyond monetary investment:

• Development of commercialization pathways for AI-powered diagnostic technologies
• Creation of a talent pipeline through educational programs and internships
• Expansion of Leidos' capabilities to serve both government (including veterans) and commercial healthcare sectors

This initiative aligns with healthcare industry's increasing adoption of AI for diagnostic efficiency and positions Leidos at the intersection of government contracting and healthcare innovation. By leveraging university research capabilities, Leidos gains R&D leverage while developing intellectual property that could enhance their competitiveness for larger healthcare contracts and potentially open new revenue streams beyond their core government business.

Federal Contracts Specialist

This partnership strengthens Leidos' position for government healthcare contracts by developing AI capabilities that align with federal healthcare modernization priorities.

This University of Pittsburgh collaboration strategically positions Leidos to strengthen its competitive advantage in the federal health technology contracting space. The company's decision to invest in AI-driven healthcare aligns perfectly with their extensive government contracting portfolio, particularly their long-standing relationship managing the National Cancer Institute's Frederick National Laboratory.

The specific mention of improving healthcare for veterans is particularly noteworthy. Federal agencies like the VA and Department of Defense are increasingly prioritizing AI-enabled healthcare solutions to improve efficiency and quality of care. By developing validated AI diagnostic tools with proper regulatory compliance (explicitly mentioned in the article), Leidos is positioning itself to capture significant government contracts in this high-growth sector.

This partnership provides Leidos with three competitive advantages in the federal contracting space:

• Academic validation necessary for government adoption of AI healthcare technologies
• Regulatory pathway expertise critical for federal healthcare implementation
• Development of specialized workforce familiar with both AI technology and government requirements

The collaboration's emphasis on underserved communities, including veterans, directly aligns with federal healthcare priorities and funding streams. This positions Leidos to potentially leverage this $10 million investment into substantially larger federal contracts as these technologies mature from research to deployment. The commercial pathways mentioned also indicate potential diversification beyond purely government revenue streams, enhancing long-term growth prospects.

RESTON, Va., April 18, 2025 /PRNewswire/ -- Leidos (NYSE: LDOS) is committing $10 million to accelerate the use of artificial intelligence for detecting and managing diseases, in collaboration with the University of Pittsburgh's Computational Pathology and AI Center of Excellence (CPACE).

The initial focus of the five-year collaboration will be developing AI-powered tools for quicker detection of diseases, such as heart disease and cancer, reducing diagnostic turnaround times, and enabling earlier, more effective care management.

"Our investment is aimed at using the transformative power of artificial intelligence to speed detection, diagnosis and treatment of diseases that affect millions of people annually," said Leidos CEO Tom Bell. "These efforts will also focus on developing future health care specialists, and expanding the care that's available to underserved communities, including our veterans."

For more than 25 years, Leidos has operated the National Cancer Institute's Frederick National Laboratory for Cancer Research, supporting progress in the fight against cancer. The company also brings more than two decades of experience applying AI to important areas like health care, national security, and energy, and helps improve care for military families and veterans by strengthening delivery, access, and continuity of care.

Key objectives of the Leidos-University of Pittsburgh collaboration include:

• Establishing a World-Class Research Hub: University of Pittsburgh will enhance CPACE by continuing development of its state-of-the-art Digital Pathology Research Center. These facilities will drive pioneering research in digital pathology and AI-driven diagnostics.
  
  
• Developing Digital Health Care Solutions: Advancing AI-powered technologies will cement the University of Pittsburgh's leadership in digital pathology and enable Leidos to develop innovative solutions designed to support digital health and diagnostics.
  
  
• Accelerating Global Impact: Leidos plans to leverage the collaboration to deploy AI-powered digital pathology solutions across public and private health care sectors with the goal of leading the commercialization of innovative health care technologies.

"The University of Pittsburgh's leadership in research and innovation, coupled with the expertise in technology solutions offered by Leidos, establishes a path forward to delivering advancements in diagnosis, disease management and health care delivery," said Anantha Shekhar, senior vice chancellor for the health sciences and John and Gertrude Petersen Dean, University of Pittsburgh School of Medicine.

Through this multi-year collaboration, Leidos and the University of Pittsburgh will drive advances in several critical areas:

• Research & Technology Development: Joint research projects will explore new imaging methods, advanced scanning technologies to analyze tissue samples, and improved techniques for analyzing medical images with precision.
  
  
• Workforce Development & Education: The initiative will cultivate the next generation of health care and AI innovators through comprehensive educational programs, including industry-focused best practices, annual symposiums, and hands-on internship opportunities where students will collaborate directly with Leidos experts.

"We want these tools to impact as many people as possible globally. Leidos can help get them into many more hands, ensuring that they are validated properly and get through the right regulatory frameworks," said Hooman Rashidi, executive director of CPACE and associate dean of AI in medicine at the University of Pittsburgh School of Medicine.

By merging academic excellence with technological innovation, the collaboration is poised to redefine the future of health care delivery and disease management.

"This relationship with Leidos serves as a catalyst to expedite our mission. Industry partnership will help broaden the impact of Pitt's innovation," said Liron Pantanowitz, Dr. Maud L. Menten Professor and chair of the Department of Pathology at the University of Pittsburgh School of Medicine.

About Leidos 

Leidos is an industry and technology leader serving government and commercial customers with smarter, more efficient digital and mission innovations. Partnering with government agencies, Leidos helps improve health outcomes across the U.S. by integrating clinical expertise, science, and technology to expand access to care, strengthen readiness, and advance biomedical research. Headquartered in Reston, Virginia, with 48,000 global employees, Leidos reported annual revenues of approximately $16.7 billion for the fiscal year ended January 3, 2025. For more information, visit www.leidos.com.

About University of Pittsburgh School of Medicine

As one of the nation's leading academic centers for biomedical research, the University of Pittsburgh School of Medicine integrates advanced technology with basic science across a broad range of disciplines in a continuous quest to harness the power of new knowledge and improve the human condition.

Certain statements in this announcement constitute "forward-looking statements" within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management's current beliefs and expectations and are subject to significant risks and uncertainties. These statements are not guarantees of future results or occurrences. A number of factors could cause our actual results, performance, achievements, or industry results to be different from the results, performance, or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, the "Risk Factors" set forth in Leidos' Annual Report on Form 10-K for the fiscal year ended January 3, 2025, and other such filings that Leidos makes with the SEC from time to time. Readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Leidos does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.

Media Contacts

Leidos:

Brandon Ver Velde
(571) 526-6257
brandon.p.vervelde@leidos.com

University of Pittsburgh:

Nick France
nfrance@pitt.edu  

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SOURCE Leidos Holdings, Inc.

FAQ

What is the value and duration of Leidos' (LDOS) investment in the University of Pittsburgh's AI initiative?

Leidos is investing $10 million in a five-year collaboration with the University of Pittsburgh's CPACE to develop AI-powered disease detection tools.

What are the main objectives of the Leidos-University of Pittsburgh collaboration in 2025?

The collaboration aims to establish a world-class research hub, develop digital healthcare solutions, and accelerate global impact through AI-powered pathology solutions.

How will the Leidos (LDOS) investment in AI disease detection benefit healthcare?

The investment will help develop AI tools for quicker detection of diseases like heart disease and cancer, reduce diagnostic turnaround times, and enable earlier, more effective care management.

What experience does Leidos bring to the University of Pittsburgh partnership?

Leidos brings over 25 years of experience operating the National Cancer Institute's Frederick National Laboratory and two decades of AI application expertise in healthcare.