AdAlta’s $31M Bet on PD1-Armored CAR-T Therapy Targets $12B Mesothelioma Market
AdAlta Limited and its subsidiary AdCella have partnered with Shanghai Cell Therapy Group to co-develop a pioneering CAR-T cancer therapy targeting solid tumours outside China. This collaboration aims to bring a novel, armored immunotherapy with promising clinical results to global markets.
- AdAlta’s AdCella to co-develop SHcell’s BZDS1901 CAR-T therapy outside greater China
- BZDS1901 targets mesothelin with PD1 armoring, showing strong responses in advanced mesothelioma
- AdCella to finance development, establish manufacturing in Australia, and run Phase 1 trials
- Novel capital-efficient collaboration model shares commercialization proceeds
- The partnership launches AdAlta’s 'East to West' strategy linking Chinese innovation with Australian expertise
A New Frontier in Solid Tumour Immunotherapy
AdAlta Limited (ASX:1AD), through its subsidiary AdCella, has entered a landmark Development and Collaboration Agreement with Shanghai Cell Therapy Group Co Ltd (SHcell) to co-develop and commercialize BZDS1901, a first-in-class armored CAR-T therapy targeting mesothelin (MSLN) for solid cancers outside greater China. This partnership marks a significant step in AdAlta’s ambitious 'East to West' strategy, designed to harness cutting-edge Chinese cell therapy innovation and Australian clinical and manufacturing expertise to accelerate global access to next-generation cancer treatments.
BZDS1901 distinguishes itself by its unique PD1 armoring, a mechanism that enables CAR-T cells to resist tumour-induced immune suppression; a challenge that has limited the success of previous CAR-T therapies in solid tumours. Early clinical data from China are compelling, with a 63.5% overall response rate in advanced mesothelioma patients, including complete responses, which is a remarkable achievement given the limited treatment options and poor prognosis in this patient group.
Capital-Efficient Development and Manufacturing
Under the agreement, AdCella will finance the development of BZDS1901 outside China, investing an estimated US$22-31 million over four years to advance the therapy through Phase 1 clinical trials in Australia. This includes establishing a scalable, cost-efficient manufacturing platform that leverages a proprietary mRNA enzyme technology enabling production in under two days; significantly faster and cheaper than conventional CAR-T manufacturing processes.
The collaboration employs a novel asset financing model where AdCella’s investment secures exclusive rights to develop and commercialize the therapy outside greater China, while SHcell retains rights within China and benefits from shared economic proceeds. This approach allows both parties to focus resources efficiently, with SHcell continuing to develop its pipeline domestically and AdCella driving global expansion.
Strategic Implications and Market Potential
Mesothelioma and other solid tumours expressing mesothelin represent a significant unmet medical need, with over 35,000 new mesothelioma cases diagnosed annually worldwide and limited effective therapies once chemotherapy fails. The global market for mesothelioma-related drugs alone is projected to reach US$12.2 billion by 2034, with additional opportunities in lung, ovarian, and pancreatic cancers where mesothelin is highly expressed.
AdAlta’s CEO Tim Oldham emphasised the strategic importance of this collaboration, highlighting the therapy’s potential to transform treatment for solid cancers and the advantage of combining Chinese innovation with Australian clinical excellence. The partnership also positions AdAlta at the forefront of a rapidly growing cellular immunotherapy market, projected to reach US$20.3 billion by 2028.
Looking Ahead
Key milestones over the next 9-12 months include securing FDA Investigational New Drug (IND) approval, commencing Phase 1 clinical trials in Australia, and advancing technology transfer and manufacturing optimisation. AdCella is also exploring in-licensing additional products to expand its pipeline, reinforcing the scalability of the 'East to West' model.
This collaboration not only exemplifies a new paradigm in international biotech partnerships but also offers a promising pathway for patients with few treatment options. The coming months will be critical as clinical development progresses and the partnership’s commercial potential begins to crystallise.
Bottom Line?
AdAlta’s alliance with SHcell sets the stage for a global push in CAR-T therapies for solid cancers, with early clinical promise and a savvy capital model driving investor interest.
Questions in the middle?
- How quickly will AdCella secure FDA IND approval and initiate Phase 1 trials in Australia?
- What are the prospects for expanding the pipeline beyond BZDS1901 under the 'East to West' strategy?
- How will the shared commercialization proceeds be structured if development extends beyond Phase 1?
