Abstract: The advent of generative AI now enables large-scale $\textit{de novo}$ design of molecules, but identifying viable drug candidates among them remains an open problem. Existing drug-likeness prediction methods often rely on ambiguous negative sets or purely structural features, limiting their ability to accurately classify drugs from non-drugs. In this work, we introduce BounDrE: a novel modeling of drug-likeness as a compact space surrounding approved drugs through a dynamic deep one-class boundary approach. Specifically, we enrich the chemical space through biomedical knowledge alignment, and then iteratively tighten the drug-like boundary by pushing non-drug-like compounds outside via an Expectation-Maximization (EM)-like process. Empirically, BounDrE achieves 10\% F1-score improvement over the previous state-of-the-art and demonstrates robust cross-dataset performance, including zero-shot toxic compound filtering. Additionally, we showcase its effectiveness through comprehensive case studies in large-scale $\textit{in silico}$ screening.