Professor Li Xu of Westlake University Focuses on AI-Driven Drug Discovery with Differentiated Strategy to Tackle Industry Pain Points

Li Xu has a habit: whenever he finishes a task, he willReview. If he fails because he did not give his all, he usually feels remorseful as a result.

He said that starting a business naturally requiresall in——Failing to devote oneself wholeheartedly is irresponsible to investors, the school, the company team, and even to oneself.

“Then it’s better not to do it at all.” He advocates for going all out, being precise, and fully committing oneself.

So, how did Li Xu promote the translation of genuine scientific research achievements, accurately position Gaowei Medicine, and achieve a breakthrough? As both a university professor and a corporate founder, how does he view the differences between scientific research and entrepreneurship, thereby maintaining a balance between innovation and commercialization?

In his dialogue with Orange Fruit Bureau,"Differentiation"“The most frequently appearing term.” As a future computing-driven drug discovery company, Gaowei Pharma indeed exhibits various distinctive traits that set it apart from other AI-powered pharmaceutical companies. These characteristics warrant further study.

Entrepreneurship is sometimes like playing a video game: there are many ways to win—this strategy works, and so does that one.

For Li Xu and Gaowei Pharmaceutical,Rerouting and arsenal restructuring are the keys to victory. Moving upstream, Li Xu is looking at different tracks.

In 2022, when he founded Gaowei Pharma, he positioned the company’s core focus onComputational-Driven Target Discoveryabove. This decision was most directly influenced by his research experience.

By systematically studying protein signaling networks and their dynamic regulation and reprogramming in complex diseases, Li Xu has been uncovering the mechanisms underlying the onset and progression of these conditions, while continuously identifying novel biomarkers and therapeutic targets. Drawing on nearly two decades of R&D experience, he recognizes thatIn the field of drug discovery, companies lacking target discovery capabilities will face challenges such as market saturation, intense competition, and severe homogenization.

Following the boom of 2020–2021, the AI drug discovery industry has shown signs of fatigue, with the market viewing its technology and business models skeptically (to date, no AI-discovered drug has received regulatory approval).

However, looking upstream, computation-driven target discovery remains a blue-ocean market. Li Xu told VCBeat that the number of AI drug discovery companies in China using target discovery as their entry point can be counted on one hand, and most of these companies are still in their early startup stages.

Thus, this presents an opportunity—taking the road less traveled, which still feels relatively uncrowded. Gaowei Pharma has begun to focus on identifying novel targets for refractory diseases.

Rapidly and Accurately Identify Targets, which is the goal of Li Xu and Gaowei Pharmaceutical. Behind this goal, Li Xu introduced two other “differentiators” of Gaowei Pharmaceutical to Chengguo Bureau.

One isHigh-Dimensional Biological Algorithms——Reconstruct a hypothetical high-dimensional space and locate diseases, targets, drugs, and pharmacology within this space.

The other isHigh-Quality Database—First-hand data generated independently by laboratories. The creation of such databases, which demand substantial human and material resources, has deterred many AI-driven pharmaceutical companies.

High-Dimensional Biological Algorithm Logic Diagram. Image provided by the interviewee.

The concept of the former was proposed through a collaboration between Li Xu’s team and Professor Rudy Guerra, Chair of the Department of Statistics at Rice University. The original intent of high-dimensional biological algorithms was to process protein network data across different dimensions; however, in practical applications, these algorithms have been expanded to integrate diverse biological and clinical data from various dimensions and sources, such as multi-omics, high-throughput drug screening, CRISPR screening, and patient cohort data.

Unlike the one-dimensional association algorithms of Gene Ontology or experience-based scoring methods, our team identifies new targets proximal to diseases or difficult-to-drug targets in high-dimensional space, thereby providing novel, tractable therapeutic targets for complex and refractory diseases.

The latter relies on the vast amount of data generated by laboratory experiments over the years, including proteomics, genomics, metabolomics, high-throughput drug screening, and CRISPR screening data. Among these, the protein network data platform was built by Gaowei Medicine over more than a decade, with the participation of many professionals and an investment of tens of millions of yuan.

This “accumulation” also constitutes Gaowei Pharma’s primary technological moat. While most target discovery companies or platforms opt to use public databases with questionable data quality, Gaowei Pharma differentiates itself by possessing its own proprietary data, thereby securing a leading advantage in future competition.

Empowered by the above two “differentiations,” Gaowei PharmaSeveral targets have been validated by peers and advanced to Phase II clinical trials.For example, during the COVID-19 pandemic, a novel druggable receptor for SARS-CoV-2 was identified in just over three months. This demonstrates High-Dimension Medicine’s capability in target discovery.

Startups cannot avoid discussions about money and people.

In July 2023, Gaowei Medicine announced the completion of its angel round financing, raising tens of millions of RMB. This round was jointly invested by several well-known investment institutions, including the Beta Pharma Biomedical Industry Fund and Xihu Innovation Investment. However, completing a round of financing does not equate to victory.

“The biopharmaceutical industry is capital-intensive, requiring substantial financial investment.” Maintaining an optimistic outlook on its prospects, Gaowei Medicine is currently actively preparing for its next round of financing.

In addition to the source of funds, Li Xu is equally concerned about where the money goes:Allocate all resources to the most critical areas, focus on advancing one or two pipeline assets, and then divest them to generate cash flow.

How to generate cash flow is closely tied to Gaowei Pharma’s business model. On one hand, the company continues to advance its existing pipeline to maximize value, demonstrating its drug discovery capabilities and thereby enhancing the value of other assets in its portfolio. On the other hand, it leverages the substantial number of additional pipeline candidates continuously generated by its R&D platform, engaging in collaborative development or licensing agreements with established pharmaceutical companies to achieve win-win outcomes.

The core logic is toFocus on What You Do BestDrawing on Li Xu’s personal experience—over a decade in the United States spanning drug target discovery through Phase I clinical trials—the core team at Gaowei Pharma has assembled some of the earliest algorithm developers engaged in AI-driven drug discovery (AIDD), senior chemists with twenty years of experience in U.S. pharmaceutical companies, and seasoned pharmacologists with two decades of expertise. With this foundation, both Li Xu and Gaowei Pharma have full confidence in their capabilities in early-stage drug discovery, optimization, and preclinical development.

Gaowei Pharmaceutical's Product Pipeline, Photo Provided by Interviewee

Li Xu revealed that Gaowei Pharma has already promoted7 itemsA relatively mature pipeline targeting cancer, neurodegenerative diseases, and other indications. Among these, five candidates have completed animal studies, two have entered the IND-enabling stage, and clinical trial approvals are expected to be obtained next year.

After overcoming the first developmental hurdle (the flow of funds), Gaowei Medicine must precisely address the second hurdle, namelyHow to Find Competent and Like-Minded Partners。

There seems to be an inherent contradiction in talent recruitment for startups. On one hand, the bar for candidates is exceptionally high. “What we are developing is virtually unmatched by other companies in China, making recruitment an extremely challenging task.” From the perspective of Li Xu and Gaowei Pharmaceutical, to ensure that work proceeds with high efficiency and at a superior standard, they seek candidates with the highest possible level of professional competence and alignment with their corporate values.

But on the other hand, how can startups find and retain truly outstanding talent?

High salaries may be part of the answer, in Li Xu’s view,Greater Caution in Recruitment Is More Important“In addition to our company’s independent recruitment efforts, referrals and insights from colleagues and surrounding investors serve as important channels for identifying and evaluating candidates.” After a moment’s thought, Li Xu provided two contrasting examples of candidate background checks, in which final hiring decisions were made with the assistance of colleagues and investors. Currently, Gaowei Pharma has around ten full-time employees, half of whom possess extensive industry experience to support R&D activities.

In the second year of its founding, Gaowei Medicine’s R&D center was completed, and the company began to operate smoothly. Li Xu had precisely timed and positioned every critical decision—from selecting the right market niche, to securing financing, to structuring business operations.

But going back to the beginning, he never intended to start a business.

In the United States, Li Xu was accustomed to a mature translational framework—hospitals served as the driving force behind translation. After principal investigators (PIs) identified new targets and compounds, hospitals would evaluate them and select the most promising candidates for subsequent clinical trials. At that time, he believed that translating scientific research into practical applications was a relatively straightforward process.

“It was only when I sought to translate my research findings into practical applications that I realized it was unrealistic to pursue this endeavor solely through individual efforts.” In 2021, Li Xu’s team developed two new drug candidates, which yielded promising results in animal studies. At that point, he reached out to the Assistant President of Westlake University, who oversees the commercialization of scientific and technological achievements.Prof. Wang Tingliang, and we hope the university can assist the team in conducting clinical trials.

“These two drugs feature novel mechanisms of action, boast broad market potential, and, based on current data, have demonstrated a favorable profile at least through Phase II clinical trials.” After listening to Li Xu’s team present their technology platform and pipeline, Wang Tingliang encouraged Li Xu to advance the commercialization of these scientific achievements and helped the team clarify their startup strategy. Behind the angel financing round of Gaowei Pharma, the presence of Westlake University is also evident. Westlake Innovation Investment is an early-stage technology fund established by Westlake University, focusing on strategic emerging industries and aimed at addressing financing challenges for early-stage projects in scientific and technological achievement translation.

Looking back, Li Xu is glad he decided to start his own business. It was only upon re-examining basic research that he realized truly commercializing scientific achievements is the only way to genuinely understand unmet clinical needs. Director of the Hangzhou R&D Center, Beta PharmaDr. Hao WuTell Li Xu, “Go talk to the clinicians and find out what the patients really need.”

Since its inception, Li Xu has defined Gaowei Pharma as an AI-driven pharmaceutical company dedicated to addressing genuine unmet clinical needs. Today, he increasingly believes that this positioning is applicable to the biopharmaceutical industry in any era.

Whether addressing clinical needs or driving corporate growth, original innovation is the only viable path.

As both a university professor and a corporate founder, Li Xu is well aware of his strengths and weaknesses. Therefore, he prefers to drive business growth through innovative science rather than engaging in corporate management himself.

"Leverage strengths and avoid weaknesses; let professionals handle professional matters."

Scientists should always focus on original innovation. In addition to being an inherent responsibility of scientists, this is also because the broader trend in the biopharmaceutical industry continues to encourage originality and enhance the technological sophistication of production lines. From this perspective, such a trend is favorable for the translation of original scientific achievements into practical applications.

Future,Li Xu and Gaowei Pharma will continue to discover new drug targets, develop novel therapeutics, and drive regulatory approvals.。

Finally, when discussing the period before and after starting his business, he said that the biggest difference was the change in his pace of life. Before becoming an entrepreneur, Li Xu’s life trajectory was very predictable: conducting experiments, reading papers, and publishing papers. After stepping into the vast wilderness of entrepreneurship, his life became more tightly wound, constantly revolving around innovation, technology transfer, and resource integration.

Li Xu, who has already entered the fray, lamented that entrepreneurship is an arduous and protracted journey, demanding substantial effort and imposing significant pressure; one must think twice before taking action. Yet, he was subsequently drawn in by the fun and joy found along the entrepreneurial path.

Because he has seen the beautiful scenery on the mountain.