Planned development of QVM149 for asthma

Vectura Group plc

Planned development of inhaled triple therapy QVM149 for asthma

Chippenham, UK - 18 June 2015: Vectura Group plc (LSE: VEC; "Vectura" or "the Company"), confirms Novartis today announced plans to develop a new inhaled dry powder triple therapy for patients with moderate to severe asthma uncontrolled on standard ICS/LABA medication. Novartis will present this information today at an Investor Event "Meet Novartis Management" in Boston, USA.

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.

First regulatory filings of QVM149 are planned for 2018.

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

Under the terms of the agreement with Novartis, Vectura is eligible to receive development, filing and approval milestones. In addition, Vectura will receive royalties on products sales in the event of a successful product launch.

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Enquiries

About Asthma

Asthma is a chronic disease characterized by recurrent attacks of breathlessness and wheezing. Some 235 million people currently suffer from asthma.1 The causes of asthma are not completely understood. However, risk factors for developing asthma include inhaling asthma "triggers", such as allergens, tobacco smoke and chemical irritants. Despite medical advances, more than half of patients continue to experience poor control and significant symptoms.2

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.

Reference:

1, http://www.who.int/mediacentre/factsheets/fs307/en/

2. Demoly et al. Eur Respir Rev. 2012 Mar 1;21(123):66-74. doi: 10.1183/09059180.00008111

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.