Xellar Biosystems Secures Multi-Million Strategic Investment from XtalPi to Advance AI-Organ Chip Integration

Xellar Biosystems, a biotech platform integrating AI and organ-on-a-chip (OoC) technologies, has announced a multi-million-yuan strategic funding round led by XtalPi (2228.HK), a global leader in AI-driven drug and materials R&D. Existing investors Tiantu Capital and Yayi Capital also participated. The proceeds will accelerate the development of Xellar’s “3D-Wet-AI” closed-loop system—spanning organ chips, wet labs, and AI algorithms—while expanding global partnerships and commercial applications.

Founded by a Harvard-trained team, Boston-headquartered Xellar leverages its proprietary high-throughput OoC and AI platforms to redefine drug development, safety assessment, and precision medicine. With operations across North America, Europe, and Asia-Pacific, the company collaborates with pharmaceutical and cosmetics giants like Sanofi, Pfizer, and L’Oréal to advance animal-free testing standards in real-world R&D pipelines.

XtalPi, known for its quantum physics-based AI platform and automated robotic labs, has partnered with Xellar on AI-OoC-driven drug screening and efficacy evaluation, yielding early successes. Post-investment, the two will combine strengths to tackle industry challenges such as high-quality biological data generation, complex disease modeling, and AI-assisted toxicity prediction. Their goal: an end-to-end, cross-species drug discovery platform that bridges OoC-based human-mimetic models with AI molecular design, enhancing clinical relevance and R&D efficiency.

Regulatory Tailwinds for Animal-Free Methods

Traditional animal models, while long considered the gold standard, face limitations in cost, timelines, and human translatability—factors contributing to the ~10% clinical trial success rate. Globally, regulators are accelerating alternatives:

• The U.S. FDA Modernization Act 2.0 (2022) permits non-animal methods for IND submissions.

• FDA-led multi-center validations (2023–2025) aim to integrate OoC, human-cell models, and AI into toxicity/efficacy standards.

• China’s Pharma Industry Digitalization Plan (2025–2030) highlights virtual animal testing as a key initiative.

Xellar, among the few OoC firms collaborating with FDA and China’s CDE on regulatory validation, offers safety/efficacy analysis via its human-cell models and AI platforms. Its EPIC™ system combines microfluidics, disease organoids, high-throughput assays, and generative AI to enable rapid microenvironment construction, multi-omics analysis, and mechanism-level drug profiling—serving pharma, functional foods, and personalized medicine.

Leadership Perspectives

• Dr. Xin Xie, CEO of Xellar: “AI-OoC is life science’s new ‘operating system.’ XtalPi’s investment fuels our shared vision for platform-level innovation. We’ll expand global commercialization in drug development, safety testing, and precision medicine while contributing to FDA/OECD standards.”

• Dr. Shuhao Wen, Chairman of XtalPi: “Xellar’s engineering prowess and disease modeling close the loop between in vitro human-mimetic systems and AI drug discovery. Together, we’ll enhance multi-organ modeling and data reliability.”

• Wei Guoxing, Partner at Tiantu Capital: “Xellar exemplifies ‘tech-convergence’ investing. Its OoC-AI synergy positions it as a core enabler for future drug and consumer health R&D.”

• Liu Chong, Yayi Capital: “Xellar’s data-to-AI pipeline addresses the demand for human-relevant systems. The XtalPi partnership will amplify automation and smart modeling capabilities.”

About Xellar Biosystems

A pioneer in AI-OoC integration, Xellar accelerates drug discovery and reduces animal reliance via its EPIC™ platform and global regulatory collaborations.

About XtalPi

A listed AI-drug discovery leader (HKEX: 2228), XtalPi integrates quantum physics, AI, and robotics to serve top pharma and biotech firms worldwide.

April 30, 2025, MedChina