Commencement of first QVM149 Phase III trial

Vectura Group plc

Commencement of first Phase III trial of inhaled triple therapy QVM149 for asthma and milestone payment

Chippenham, UK - 9 December 2015: Vectura Group plc (LSE: VEC; "Vectura" or the "Company"), confirms the commencement by Novartis of the first Phase III trial of QVM149, a new inhaled triple therapy for patients with moderate to severe asthma uncontrolled by standard ICS/LABA medication. Enrolment of the first patients into the trial programme will now trigger the receipt of a milestone payment to Vectura of $3.75m under the terms of the Licence Agreement.

QVM149 is a fixed dose, once daily combination of the long-acting beta2-agonist (LABA) indacaterol, the long-acting muscarinic antagonist (LAMA) glycopyrronium bromide and the inhaled corticosteroid (ICS) mometasone fuorate.

Glycopyrronium bromide was licensed exclusively to Novartis in April 2005 by Vectura and its co-development partner Sosei.

First regulatory filings of QVM149 are planned for 2018.

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About Vectura

Vectura is a product development company that focuses on the development of pharmaceutical therapies for the treatment of airways-related diseases (airways diseases). This growing market includes asthma and chronic obstructive pulmonary disease (COPD) and is estimated to be worth $44 billion worldwide.*

Vectura now has eight products marketed by partners with growing global royalty streams and a portfolio of drugs in clinical development, a number of which have been licensed to major pharmaceutical companies. Vectura currently has disclosed development collaborations and licence agreements with several global pharmaceutical and biotechnology companies, including Novartis, Sandoz, Baxter, GlaxoSmithKline, UCB, Ablynx, Grifols, Janssen Biotech and Tianjin KingYork Group Company.

Vectura develops products for airways diseases and owns formulation and inhalation technologies that are available to other pharmaceutical companies on an out-licensing basis where this complements Vectura's business strategy.

For further information, please visit Vectura's website at www.vectura.com.

Forward-looking statements

This press release contains forward-looking statements, including statements about the discovery, development and commercialisation of products. Various risks may cause Vectura's actual results to differ materially from those expressed or implied by the forward-looking statements, including: adverse results in clinical development programmes; failure to obtain patent protection for inventions; commercial limitations imposed by patents owned or controlled by third parties; dependence upon strategic alliance partners to develop and commercialise products and services; difficulties or delays in obtaining regulatory approvals to market products and services resulting from development efforts; the requirement for substantial funding to conduct research and development and to expand commercialisation activities; and product initiatives by competitors. As a result of these factors, prospective investors are cautioned not to rely on any forward-looking statements. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About Asthma

Asthma is characterised by variable symptoms of wheeze, shortness of breath, chest tightness and/or cough and by variable expiratory airflow limitation. Risk factors for developing asthma include allergens, viruses tobacco smoke and chemical irritants. In many patients symptoms may resolve spontaneously or in response to medication, however continued exposure to allergens may lead to worsening of symptoms. Persistent symptoms can trigger inflammatory responses in the airways and can deteriorate the condition.1

Some 235 million people, both children and adults, currently suffer from asthma.2

Reference:

1. Global Strategy for Asthma Management and Prevention, 2015 update. (http://www.ginasthma.org/)

2. WHO Fact sheet No307 (http://www.who.int/mediacentre/factsheets/fs307/en/)

[*] Decision Resources 2014