Acquisition

Quantum Pharma Plc

("Quantum" or the "Group")

Acquisition of Lamda companies for €9.7 million

Quantum Pharma Plc (AIM: QP.), a growing manufacturer, supplier and service provider to the niche pharmaceutical and healthcare sector, is pleased to announce the acquisition of 100 per cent of the share capital of Lamda (UK) Limited, Lamda Laboratories SA and Lamda Pharmaceuticals SA, collectively 'Lamda' (the "Acquisition") for a total consideration of €9.7 million.

Lamda is a pharmaceutical development and licensing business with customers in the UK, Germany, Italy, Scandinavia and Greece. Lamda provide a fully outsourced research and development service to companies looking to license medicinal products from its state of the art development laboratories near Athens, Greece.

Lamda has a proven track record of product development and licensing, having completed in excess of 100 projects during which Lamda has accumulated both IP and dossiers which the Board believe can be commercialised with the support of the Group. The first product that the Group has identified will be submitted to the MHRA for assessment within the next month.

Lamda has filed 11 patent applications, including six patents granted in Greece, three pending in Greece, and two pending in Europe and other countries.

The Lamda entities generated combined revenues of €2.1 million and losses of €0.14 million for their respective 2014 financial periods. The consideration due in respect of the acquisition of Lamda totals €9.7million, including €4.7 million payable on completion and €5.0 million deferred, to be paid in two equal instalments 12 and 24 months after completion of the acquisition. The consideration will be paid out of the Group's cash reserves.

The acquisition of Lamda has a strong strategic rationale for a number of reasons:

· Lamda has a strong pipeline of products in development including a number of niche pharmaceutical products to be filed with European Regulators shortly. This is complementary as it further strengthens the Group's pipeline of products which is already in place within Colonis.

· The Board believe there is substantial latent value in the 100 plus projects that Lamda has already completed and that a number of these novel products can be readily commercialised via out-licensing to selected third parties in a number of territories.

· Lamda's international network will be used as a platform to enable the Group's other business units to penetrate overseas markets.

· The activities of Lamda are complementary to those of the Group, as it provides vertical integration through the addition of in-house product development capability. Once integrated Lamda is expected to deliver synergies both financially and operationally.

Lamda significantly increases the Group's current product development portfolio by both number of products and therapeutic area.

Since the Group's admission to AIM, Colonis has made good progress, launching its first licensed product, Aviticol, as well as having a further licence granted on a product which is awaiting market launch in Q2 2015. A further six products are currently in assessment with the MHRA. In addition, several new products have been added to the short-term pipeline.

Andrew Scaife, Chief Executive Officer of Quantum Pharma Plc, said: "The acquisition of Lamda represents an important and exciting milestone for the Group and a further deployment of the funds raised at the time of our admission to AIM in December 2014 in accordance with the Group's stated strategy. The addition of Lamda to the Group will be earnings enhancing from early 2016 and provides us with a significantly enlarged product portfolio, with latent value as well as in-house development capability. By adding further vertical integration to Quantum it gives the Group even more control over speed of delivery as well as cost levels whilst maintaining our high standards of customer service. Lamda also gives us a footprint in Europe which we can use as a platform for overseas expansion."

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Notes to Editors

Quantum Pharma is a growing manufacturer, supplier and service provider to the wholesale and retail pharmacy, hospital, homecare and care home markets. Based in a purpose-built facility in Burnopfield, County Durham, the Group manufactures and sources non-standard pharmaceutical products. Formed in 2004, Quantum has grown significantly in recent years (both organically and by acquisition) and now employs over 330 people. The Group operates through five business units.

Quantum Pharmaceutical, the Group's core business, manufactures and supplies Specials and Special Obtains to the majority of the large retail pharmacy chains and pharmaceutical wholesalers in the UK, hospitals, independent pharmacies and dispensing doctors. Specials and Special Obtains are medicines and medicinal products that are difficult for pharmacies to source from wholesale pharmacy suppliers. Quantum has a product range of over 22,000 Special and Special Obtain products. It regularly services around 6,500 pharmacies and over 240 hospital accounts across the UK.

U L Medicines ("ULM") is a supplier of unlicensed imports (over 450 imported medicines), over 100 batch made Specials and bespoke Specials with a focus on the hospital market. ULM has a diverse customer base and supplies over 240 hospital accounts, as well as wholesalers and retail pharmacies in the UK and wholesalers overseas.

Colonisis a specialist pharmaceutical product development business, which focuses on achieving the relevant regulated status for medicines and medical devices. The development programme is currently working on a significant pipeline of products across a growing number of therapeutic areas.

Biodose isa patent protected medicine delivery system ("MDS") which consists of a tray, 28 medication pods and a seal, which is used to manage pre-prepared medication regimes for patients. These assist with patient specific medicine administration and adherence to medication regimes. The Biodose system is currently sold to around 175 pharmacy customers, through whom around 50,000 care home residents use Biodose.

Quantum Aseptics' facility at Burnopfield became operational in April 2013 after receiving an MHRA aseptic special manufacturing licence. This facility, which the Directors believe is one of the most advanced aseptics units in the UK, provides Quantum Aseptics (a division of Quantum Pharmaceutical) with the ability to aseptically prepare and supply intravenous dosage form aseptic products, whilst complementing the existing core business product offering by providing the ability to prepare these sterile Specials for the Group's other business units and third parties.

For further information, please visit www.quantumpharmaplc.com.