AdAlta has made a US$1 million (~A$1.43 million) milestone payment to its co-development partner, Shanghai Cell Therapy Group (SHcell), under the Development and Collaboration Agreement (DCA) for BZDS1901 — our lead CAR-T cell therapy for advanced mesothelioma, a rapidly fatal cancer with few treatment options.

The payment relates to five additional advanced mesothelioma patients treated with BZDS1901 in China and was funded in part from our recent A$2.5 million placement. Importantly, AdAlta has now fully met the initial financing obligations under the DCA, securing our rights to continue developing BZDS1901 for markets outside Greater China.

In return, AdAlta gains access to valuable additional clinical data from investigator-initiated trials in China — which we will analyse over the coming weeks and months — and secures supply of the critical proprietary materials needed to manufacture BZDS1901 in Australia.

With our initial commitments met, we are focused on the two milestones that matter most to this program’s value: building Australian manufacturing (first runs expected in the second half of calendar 2026) and engaging with the US FDA ahead of a pre-IND meeting anticipated in the second half of calendar 2026.