AdAlta (ASX:1AD) is abandoning internal research activities for the AD-214 antifibrotic drug to focus on its "East to West" strategy for cellular immunotherapy, according to a Thursday filing with the Australian bourse.

Following a strategic review, the company decided to cease internal discovery research and development activities for AD-214. It will still pursue the drug but only through third parties, per the filing.

Instead, AdAlta will focus on accelerating its cellular immunotherapy strategy, with two new non-binding term sheets to in-license clinical-stage CAR-T products, the filing said.

Under the agreements, AdAlta will in-license highly differentiated cell therapies for solid cancers from Asian originators and conduct Phase I clinical trials, giving it a pathway to access Western markets, the filing said.

The clinical-stage biotechnology firm's shares fell 6% in recent trade.