AdAlta Limited has modified the sequencing of AD-214 manufacturing campaigns and toxicology studies to better align these key programs with the emerging priorities of potential partners, and the results of pre-clinical studies due in the September quarter 2022. The Company has been able to secure a six-month deferral of pre-booked manufacturing campaigns and toxicology studies, which also ensures that AdAlta can delay financial commitments to these studies, extending its existing cash runway. The optimal volume of AD-214 to be manufactured for future toxicology and clinical studies, the final formulation step in manufacturing, and the optimal design of toxicology studies vary according to the indication to be studied in future clinical trials.

The different disease area and geographic interests of different potential partners and the data that will become available through the September quarter 2022 will help shape AdAlta's formulation and partnering strategy. To ensure that its manufacturing campaigns and toxicology studies are designed to maximise the development options for, and hence value of, AD-214, the Company has negotiated a 6-month deferral of AD-214 production and toxicology campaigns to maximise decision- making flexibility and ensure that these significant cash commitments are made with the benefit of the maximum amount of pre-clinical data and confirmed partner indication priorities. Clinical timelines are expected be delayed by a lesser amount.

AdAlta will now not need to commit cash to the next round of manufacturing and toxicology costs until the end of 2022. The changes to the program as outlined above have accordingly extended the company's cash runway.