Beyond Language: Why Drug Discovery Needs Physical AI, Not Just Large Language Models

In this episode of Data in Biotech, host Ross Katz sits down with Woody Sherman, Founder and Chief Innovation Officer at PsiThera, for a conversation on why AI can transform drug discovery's paperwork and code while barely touching the hardest part of the problem: the molecules themselves. Woody's career runs through physical chemistry at MIT; over a decade at Schrödinger building tools the industry still relies on; founding Silicon Therapeutics (where his team took a small molecule STING agonist from concept to clinic in roughly three years); scaling that platform after Roivant's acquisition; and now leading PsiThera's effort to build oral small molecules for immunology targets that today are only reachable with injectable biologics. The conversation digs into why large language models excel at automation, coding, and regulatory writing but hit a wall when the task is predicting how a molecule behaves, what "physical AI" actually means as a category distinct from both LLMs and traditional physics-based simulation, and why representing molecules as quantum mechanical objects rather than text strings or 2D graphs changes what's predictable.  Woody also walks through the STING program in detail, why the field's excitement over fast co-folding models like Boltz needs a strong dose of skepticism, and what it takes to build a database and team culture where chemists, biologists, and data scientists can actually understand each other. What you'll learn in this episode: >> Why the contradiction of "AI is transforming drug discovery" and "drugs still take a decade and billions of dollars" can both be true at once. >> How Silicon Therapeutics engineered a small molecule STING agonist to dimerize itself through a quantum mechanical interaction that had never been designed for before. >> What "physical AI" means as a new category built on embeddings from orbital-level, quantum mechanical representations of molecules, rather than language tokens or force-field simulations. >> Why molecular representation is the whole game: the limitations of SMILES strings and 2D graphs versus true 3D, quantum mechanical embeddings like PsiThera's Psiformer model >> Why a widely publicized claim of near-FEP-quality binding affinity at 1,000x the speed didn't hold up under scrutiny. >> How PsiThera captures not just simulation and wet lab data but human chemist judgment and reasoning as structured data, and why building a shared vocabulary across computational and experimental teams is as important as any model. Meet our guest: Woody Sherman, PhD, is Founder and Chief Innovation Officer at PsiThera, a biotechnology company designing oral small molecule drugs for immunology and inflammatory diseases, starting with the TNF superfamily. His career spans physical chemistry research at MIT, more than a decade at Schrödinger developing computational drug discovery tools, founding Silicon Therapeutics (acquired by Roivant), and leading the platform's evolution through PsiThera today. He has published more than 100 peer-reviewed papers spanning molecular dynamics, quantum mechanics, free energy simulations, and machine learning for drug design. Connect with Woody Sherman on LinkedIn: https://www.linkedin.com/in/woodysherman/ About the host: Ross Katz is Principal and Data Science Lead at CorrDyn. Ross specializes in building intelligent data systems that empower biotech and healthcare organizations to extract insights and drive innovation. Connect with Ross Katz on LinkedIn: https://www.linkedin.com/in/b-ross-katz/ Sponsored by… This episode is brought to you by CorrDyn, the leader in data-driven solutions for biotech and healthcare. Discover how CorrDyn is helping organizations turn data into breakthroughs at CorrDyn. https://www.linkedin.com/company/corrdyn/