Grant and Waiver of LTIP Options

Quantum Pharma Plc

('Quantum', the 'Group' or the 'Company')

Grant and Waiver of LTIP Options

Quantum Pharma plc (AIM: QP.) the service-led niche pharmaceutical manufacturer, developer and supplier to the health and care sectors, announces that on 10 November 2016, it granted options over 10,400,000 Ordinary Shares of 10 pence each ('Ordinary Shares') with an exercise price of 30 pence, representing approximately 6.15% of the current issued share capital, in accordance with the rules of the Quantum Long Term Incentive Plan ('LTIP') 2014 as amended by the Remuneration Committee.

The LTIP options have been granted to key members of the senior executive team. The options shall vest and become exercisable at an exercise price of 30 pence, either on the mid-market closing share price being greater than 140p for an average of 90 days or on a change of control. The options shall lapse if the target has not been achieved on or before 31 December 2021 and the exercise period is from the vesting date until 9 November 2026.

The Company anticipates granting further LTIP options, on the same terms, over an aggregate of up to 2,100,000 Ordinary Shares, representing approximately 1.24% of the current issued share capital. These further grants would include the new Chief Financial Officer (when appointed) and members of the senior executive team based on specified targets for future performance.

The recipients of the above LTIP grants have waived options over 3,206,500 Ordinary Shares with an exercise price of 100 pence granted to them between IPO admission (10 December 2014) and 10 March 2016, representing approximately 1.90% of the current issued share capital. Subject to the satisfaction of the required performance criteria, those options were due to have vested upon publication of the results of the Company for the year ending 31 January 2018.

Within the above LTIP grant, an award has been made to Chris Rigg, Chief Executive Officer and Chief Financial Officer, of an option over 6,000,000 Ordinary Shares. Within the above LTIP waiver, Chris Rigg waived an option over 250,000 Ordinary Shares granted to him on 10 March 2016. Following this award and waiver of options Chris Rigg will have an interest in 162,059 Ordinary Shares and options over 6,446,281 Ordinary Shares, representing 0.1% and 3.81% respectively of the current issued share capital.

The Company has agreed with shareholders that the dilutive effect of all shares issued under the LTIP plan or other employee share plans over a 10 year period should not exceed 10% of the shares then in issue.Under the LTIP plan rules, options granted on IPO admission are not included in the calculation of the 10% limit, nor are waived or lapsed options.

Following the above LTIP grant, the Company have granted options over 15,679,612 Ordinary Shares, representing approximately 9.27% of the current issued share capital, of which options over 14,645,762 Ordinary Shares are included in the calculation of the 10% limit under the LTIP and other share plan rules.

The notification below, made in accordance with the requirements of the EU Market Abuse Regulation, provides further detail.

Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them.

- Ends -

For further information:

Notes to Editors

Quantum Pharma Plc is a service-led, niche pharmaceutical developer, manufacturer and supplier to the retail pharmacy, pharmaceutical wholesaler, hospital, homecare and care home markets. Quantum Pharma operates through three divisions: Specials, Niche Pharmaceuticals and Medication Adherence, offering a portfolio of innovative and complementary products and services.

Specials comprises three business units (Quantum Pharmaceutical, UL Medicines and Quantum Aseptics Services). This division manufactures, procures and supplies bespoke specials; batch made specials; aseptically prepared sterile intravenous medicines; imported medicines and special obtain products in response to a request from a prescriber for a bespoke medicine or special product to optimise patient treatment. The division offers an unrivalled and constantly expanding range of products. It has a customer-focused, service-driven business model, which provides shorter lead times than any of its competitors.

Niche Pharmaceuticals comprises three business units (Colonis, Lamda and PERN Consumer Products). This division is a product development and commercialisation business focusing on taking niche drugs through the regulatory pathway to achieve regulated status (licensed product or medical device). The division uses the excellent visibility of trends in the UK pharmacy and hospital markets gained through our Specials and Medication Adherence divisions, to allow early identification of the market opportunity to take products from unlicensed to licensed status. The division has a growing portfolio and pipeline of products that fit this unlicensed to licensed pathway, as well as complementary generic, generic plus or medical devices intended to meet unmet patient needs across a number of therapeutic areas.

Medication Adherence comprises two business units (Biodose® and Biodose Services®). This division provides products and services to enhance the likelihood of a patient adhering to a medication regime, patient-focused homecare services and services to pharmaceutical companies. It owns Biodose®, the only medication delivery system on the market that accommodates both liquid and solid doses. Biodose Connect™ takes patient safety and adherence to the next level by enabling remote monitoring of adherence to medication regimes. The division also operates a range of specialist patient-focused homecare services to the NHS, private clinics and pharmaceutical companies and provides the Group with exposure to the homecare and supported living sectors of the care pathway, complementing the focus of the remainder of the Group.

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