AdAlta Launches Groundbreaking CAR-T Collaboration, Raises $2.8M to Fuel Growth

Strategic Collaboration Marks New Chapter

AdAlta Limited (ASX – 1AD) has taken a significant step forward in its ambition to transform cancer treatment by officially launching its "East to West" cellular immunotherapy operations. This initiative is anchored by a collaboration with Shanghai Cell Therapy Group Co Ltd (SHcell) to co-develop BZDS1901, a pioneering armored CAR-T therapy targeting mesothelioma and other solid cancers. The partnership leverages China's innovation in cellular therapies alongside Australia's manufacturing and clinical trial expertise, aiming to accelerate global access to next-generation treatments.

BZDS1901 – A Promising CAR-T Therapy for Solid Tumours

BZDS1901 stands out as a first-in-class CAR-T product designed to overcome the challenges that have limited CAR-T success in solid tumours. It targets mesothelin (MSLN), a protein highly expressed in mesothelioma cells but minimally in healthy tissues, making it an ideal therapeutic target. The therapy is "armored" to block PD1, a mechanism tumours use to evade immune attack, potentially enhancing effectiveness where other CAR-T therapies have struggled.

Clinical data from China involving 36 patients with advanced mesothelioma and other solid cancers have shown encouraging results, including a 63.5% overall response rate and complete responses in some cases. Notably, BZDS1901 can be manufactured in under two days using a proprietary mRNA enzyme process, offering a faster and more cost-effective production compared to conventional CAR-T therapies.

Financial Strengthening and Capital Raising

Alongside operational progress, AdAlta has bolstered its financial position by raising $2.8 million through private placements, including $1.2 million raised post-quarter. This capital injection has lifted the company's cash balance to $1.58 million at the end of December 2025, excluding subsequent placements and R&D tax refunds. Importantly, AdAlta has fully repaid its obligations under the New Life Sciences Capital and Meurs Group investment agreements, eliminating the need for further share issuances under these arrangements.

Operational costs have been managed prudently, with cash operating expenses down 31% compared to the previous quarter. The company continues to pursue non-dilutive funding opportunities for its other pipeline assets, including AD-214, an antibody therapeutic targeting fibrotic diseases, and WD-34, an anti-malarial i-body molecule.

Looking Ahead – Clinical and Manufacturing Milestones

AdAlta’s near-term objectives focus on advancing the BZDS1901 program through critical milestones. These include securing additional third-party investment into AdCella, completing a pre-IND meeting with the US FDA to align on regulatory pathways, treating more patients under ongoing investigator-initiated trials in China, and commencing IND-enabling studies in Australia. The company is also progressing technology transfer to an Australian contract manufacturing organisation and exploring pipeline expansion through in-licensing opportunities.

With the FDA recently endorsing more flexible manufacturing requirements for cell and gene therapies, AdAlta is well-positioned to benefit from streamlined regulatory processes that could reduce costs and accelerate clinical development timelines.