AdAlta (1AD) Status update summary

Launch of East-to-West cellular immunotherapy strategy

• Initiated first in-licensing deal for next-generation CAR-T cell therapy BZDS1901, targeting mesothelioma and other solid tumors, from Shanghai Cell Therapy Group.

• Strategy focuses on in-licensing Asian clinical-stage CAR-T assets, westernizing them through Australian trials, and positioning for global partnerships and on-licensing to global partners.

• Business model enables rapid, capital-efficient asset development, short investment horizons, and frequent clinical milestones.

• AdCella, a subsidiary, executes this strategy and is expected to retain a majority stake post-funding round.

Lead asset: BZDS1901 CAR-T therapy

• BZDS1901 is an armored, MSLN-targeted, anti-PD-1 nanobody autologous CAR-T therapy for solid tumors, licensed from Shanghai Cell Therapy Group.

• BZDS1901 has been administered to 36 patients in China, confirming clinical activity and safety.

• Early clinical data show up to 63.6% overall response rate and up to 17% complete response in advanced mesothelioma, exceeding current benchmarks.

• Preclinical studies demonstrate significant improvements in potency, safety, and PD1 blocking power, with a two-day manufacturing process that avoids expensive vectors.

• Exclusive rights outside greater China and access to proprietary transposase technology.

Market opportunity and financial structure

• Mesothelioma market is forecast to exceed $12.2 billion by 2034, with BZDS1901's addressable market estimated at $4.2 billion.

• MSLN is highly expressed in multiple cancers, extending potential indications beyond mesothelioma.

• Development budget for Phase I is $14–19 million over four years, leveraging $8–12 million in R&D tax rebates.

• Commercialization proceeds split 60% to AdCella and 40% to Shanghai Cell Therapy Group; initial funding tranche of $3–5 million targeted from investors.

• Median Phase 1 CAR-T licensing deal values at $782 million, with upfront payments of $85 million.