VR632 EU development milestone

Vectura Group plc

VR632 EU development milestone

Chippenham, UK - 30 October 2015: Vectura Group plc (LSE: VEC; "Vectura" or the "Company"), which specialises in the development of products for the treatment of airways-related diseases, announces that a cash milestone has been triggered by the successful achievement of a further development milestone associated with VR632 in the EU. VR632 is a generic, inhaled combination therapy for asthma/COPD delivered using Vectura's proprietary dry powder inhaler and formulation technology.

In December 2007, Vectura signed a licence agreement with Sandoz for the development, manufacturing and commercialisation of VR632 in Europe. To date, Vectura has announced development milestones under this agreement of €1.0m. The milestone announced today is for an additional €0.75m. Vectura will receive a royalty from all sales of VR632 in Europe in the event of successful launches.

Trevor Phillips, Chief Operating Officer, commented:

"The announcement of this further development milestone continues to demonstrate the progress being made on another of our partnered generics pipeline products and follows the recent positive milestone announcement we made on our US generics portfolio product, VR315. This achievement is underpinned by the excellent ongoing relationship, combining the device and development strengths of Vectura with our partner Sandoz. 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 $44 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, 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.

 1 Decision Resources 2014