Development and licence agreement with Janssen

Vectura Group plc

Vectura signs global development and licence agreement with Janssen in asthma/COPD

Chippenham, UK - 6 January 2015: Vectura Group plc (LSE: VEC; "Vectura" or the "Company") today announced that the company has entered into a global development and licence agreement with Janssen Biotech, Inc. ("Janssen") for the exclusive development of novel anti-inflammatory therapies for the treatment of asthma/COPD. The collaboration will focus initially on the development of a Phase II candidate and has the potential to include additional clinical-stage candidates.

The collaboration will leverage Vectura's expertise and proprietary dry powder inhaler technologies in the development of inhaled therapeutics. Vectura will apply its delivery technologies to develop Janssen's pulmonary products into late-stage clinical development and commercialisation.

Janssen will lead the clinical development programmes, with Vectura taking responsibility for pharmaceutical development and preparation for Phase II clinical trials.

The deal comprises upfront and development milestones and a tiered royalty on net sales. Financial terms of the agreement are not disclosed.

Dr. Chris Blackwell, Chief Executive of Vectura, commented:

"Vectura's role in this agreement is to apply its expertise in the development of products for airway-related diseases and to utilise its technology/device platform offerings, some of which have regulatory and commercial validation. Vectura continues to be viewed as a partner of choice by companies seeking to address the unmet medical needs of patients with airway diseases."

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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 in excess of $46 billion worldwide.1

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 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.

References

1 Pharmaview Commercial Landscape Series Respiratory Decision Resources 2013

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.