Decomposing the Generalization Gap in PROTAC Activity Prediction: Variance Attribution and the Inter-Laboratory Ceiling

Machine-learning predictors of biochemical activity often exhibit large random-split-to-leave-one-target-out generalisation gaps that have been documented but not decomposed. We frame this as an evaluation-science question and use targeted protein degradation as the empirical test bed. PROTACs (proteolysis-targeting chimeras) are heterobifunctional small molecules that induce targeted protein degradation, with more than forty candidates currently in clinical trials; published predictors report AUROC of 0.85 to 0.91 under random-split cross-validation, while the leave-one-target-out (LOTO) protocol of Ribes et al. reduces performance to approximately 0.67. Random splits reward within-target interpolation, whereas LOTO measures the novel-target prediction that de-novo design depends on. We decompose this gap and identify inter-laboratory measurement variance as the dominant component, anchored by a within-target cross-laboratory cascade bounding the inter-laboratory contribution at 0.124 AUROC, well above the 0.05 contribution from binarisation-threshold choice. Across eight published architectures and ESM-2 protein language models up to 3B parameters, LOTO AUROC plateaus near 0.67, with a comparable plateau under SMILES-level deduplication; a 21-dimensional 2000-trial hyperparameter optimisation cannot break this ceiling, and the rank-1 single-seed configuration regresses by 0.161 AUROC under multi-seed validation, matching a closed-form selection-bias prediction (Bailey and Lopez de Prado, 2014). Few-shot k=5 stratified per-target retraining combined with ADMET features lifts 65-target LOTO AUROC from 0.668 to 0.7050, and post-hoc Platt scaling recovers raw output to within the 0.05 well-calibrated threshold. We release PROTAC-Bench (10,748 measurements, 173 targets, 65 LOTO folds), the variance-decomposition framework, the per-target calibration protocol, and the evaluation code.