• Signed major development agreement with Shanghai Cell Therapy Group to co-develop groundbreaking CAR-T product BZDS1901 for global markets
• Raised $2.8 million via private placements, including $1.2 million post period end
• Received $0.93 million R&D Tax Incentive refund, repaid Radium RDTI loan

AdAlta Limited (ASX:1AD), developer of next generation cell and protein therapeutics, has announced its Appendix 4C cash flow report for the quarter ended 31 December 2025 (Q2 FY26), along with key operational and financial updates. The highlight of the quarter was the formal launch of AdAlta's 'East to West' cellular immunotherapy strategy, with the signing of a major development agreement with Shanghai Cell Therapy Group Co Ltd ('SHcell') to co-develop the groundbreaking CAR-T cancer therapy, BZDS1901, for global markets outside China. BZDS1901 is a highly differentiated clinical stage, first-in-class armored CAR-T product targeting mesothelin with demonstrated complete responses in advanced mesothelioma patients and a low-cost, scalable manufacturing process. The partnership with SHcell marks the official operational launch of AdAlta's 'East to West' strategy, leveraging Chinese innovation and Australian expertise to accelerate global access to next-generation cell therapies. During the quarter, the company also raised $2.8 million via private placements, including $1.2 million raised post period end, and received a $0.93 million R&D Tax Incentive refund. The remaining balance of the New Life Sciences Capital and Meurs Group investment agreements were also repaid, further strengthening AdAlta's balance sheet and capital structure. Near-term objectives for the company include securing additional financing for AdCella, completing a pre-IND meeting with the FDA, treating more patients with BZDS1901 in China, commencing IND-enabling studies, and advancing discussions to in-license a second product for AdCella's pipeline.

AdAlta's near-term objectives include securing additional financing for its AdCella subsidiary, completing a pre-IND meeting with the FDA, treating more patients with BZDS1901 in China, commencing IND-enabling studies, and advancing discussions to in-license a second product for AdCella's pipeline.