AdAlta (ASX:1AD) has secured exclusive rights to co-develop Shanghai Cell Therapy Group's BZDS1901 CAR-T therapy outside Greater China, a significant move validating its 'East-to-West' strategy and potentially unlocking substantial future value despite ongoing corporate and funding uncertainties.
Global CAR-T rights secured
In a pivotal step for its strategic direction, AdAlta and its subsidiary AdCella have struck a Development and Collaboration Agreement with Shanghai Cell Therapy Group (SHcell). This deal focuses on the co-development of SHcell’s BZDS1901, a PD1-armored mesothelin-targeting autologous CAR-T therapy.
The agreement grants AdCella exclusive rights to develop and commercialise BZDS1901 in markets outside Greater China. This represents a significant move for the company's stated 'East-to-West' strategy, aiming to bring promising Asian-developed assets to Western markets.
Under the terms, net commercialisation proceeds from future events will be split 60% in favour of AdCella and 40% to SHcell. Governance will be managed through a Joint Development Committee with equal representation.
AdCella funding Phase 1
AdCella is committed to funding the Phase 1 development outside China. This includes a minimum commitment of US$15 million for Stage 1, with at least US$3 million due to SHcell within 70 days.
The subsidiary will also establish manufacturing capabilities in Australia. A Phase 1 trial is planned in Australia, targeting up to 18 advanced mesothelioma/gynaecological patients. The primary objectives of this Phase 1 trial are to demonstrate clinical proof-of-concept and manufacturing scalability.
Manufacturing and Technology Edge
A key advantage highlighted for BZDS1901 is its manufacturing process. It can be produced in under two days, significantly faster than typical CAR-T therapies which often take 9–10 days. This efficiency stems from a non-viral, mRNA-delivered approach.
Plans include a technology transfer to AdCella in Australia to facilitate this manufacturing. Post Stage 1, AdCella may retain rights to commercialise BZDS1901 specifically for Australia and New Zealand.
Strategic shift and funding context
This collaboration builds on AdAlta's strategic transformation, which began after its FY25 results. The company shifted from in-house i-body discovery to an 'East-to-West' cellular immunotherapy model, prioritising the in-licensing of CAR-T assets from Chinese partners.
Throughout this period, AdAlta has focused on cost reduction, including a significant headcount cut to just one permanent employee from a peak of nine. The company has also been active in securing funding, completing a renounceable rights issue in May 2025 that raised A$1.3 million.
More recently, AdAlta received an A$0.78 million FY25 RDTI refund in December 2025, with A$0.31 million boosting its cash after repaying a Radium Capital loan. Corporate updates also saw the withdrawal of a proposed 10-for-1 share consolidation at the November 2025 AGM, and the final settlement of the Meurs Group Investment Agreement in October 2025 through the issuance of 201,666,666 Placement Shares. AdAlta intends to retain majority ownership of AdCella after the initial funding round, with private financing discussions ongoing.
AdAlta's strategic gamble
This CAR-T co-development deal represents a significant de-risking and validation of AdAlta's 'East-to-West' strategy, potentially unlocking substantial value through exclusive global rights outside China. However, execution risks, continued reliance on future financing, and the inherent clinical uncertainties of CAR-T therapies remain key considerations.
