Biologics drug development company Adalta (1AD: $0.09) has announced that its lead drug candidate, AD-214, will now be developed as an inhaled drug rather than a systemically delivered injected therapy.

The key reason for the change is that preclinical imaging studies with a radiolabelled version of AD-214 showed high accumulation levels (more than half the administered dose) in the liver. The reasons for strong binding affinity in the liver are unknown at this point, but it is not related to the i-body platform with the rapid distribution to the liver seen only with this drug candidate.

Adalta (1AD: $0.155) has progressed its collaboration with GE Healthcare for its cancer treatment diagnostic.

In September Adalta signed a commercial deal with GE to find i-bodies using its unique technology that could very specifically bind to the enzyme granzyme B which is produced by activated T-cells.

Adalta has now identified several relevant i-bodies which will progress into preclinical development.

Last week Adalta (1AD: $0.175) provided details of the successful completion of its Phase Ia trial with its lead antibody drug candidate, AD-214. The company will now move into two additional Phase I studies, one in healthy volunteers and the second in patients with fibrotic lung diseases.

Adalta’s (1AD) competitive prospects improved recently when a high profile drug, ziritaxestat, being developed by Galapagos and Gilead Sciences for idiopathic pulmonary fibrosis (IPF), was discontinued.