Vectura Group Enters Exclusive with Sandoz for Asthma Treatment

Vectura Group plc (“Vectura”; LSE: VEC) today announces that it has entered into an exclusive license agreement with Sandoz, the generics division of Novartis, for the development and marketing of VR315, a combination therapy for asthma/COPD, in the rest of world (“RoW”) territory. RoW territory excludes the USA and those countries included in the existing VR315 European license with Sandoz.

Under the terms of the VR315 RoW agreement, Vectura will receive a royalty on net sales and a margin on the commercial manufacture and supply of the dry powder inhaler device used to deliver VR315 for RoW. Vectura is also eligible for milestones and advance pre-launch royalties worth up to €8m; €2.5m of which are expected to be received by 30 September 2011.

Sandoz will be solely responsible for any development work required and for obtaining marketing authorisations throughout the RoW territory, which includes Japan, Canada, South America and Australia.

Dr Chris Blackwell, Chief Executive of Vectura, commented:

VR315 has a large market opportunity in these rapidly expanding territories, where patient access to good, affordable treatments for asthma and COPD is of great importance. This agreement extends our existing relationships with Sandoz and further endorses Vectura’s respiratory expertise and GyroHaler® technology.”

Combination therapy for asthma/COPD is the biggest and fastest growing sector of the respiratory market, with annual sales currently exceeding US$11 billion. Global annual sales in territories outside Europe and the US are estimated at US$2.5billion and are continuing to grow.

Vectura exclusively licensed the European rights for VR315 to Sandoz in March 2006. In December 2007, Vectura licensed Sandoz the European rights to a second combination asthma/COPD product, VR632, delivered with the same device.

Vectura Group plc

+44 (0)1249 667700
Chris Blackwell, Chief Executive
Anne Hyland, Chief Financial Officer
Julia Wilson, Director of Investor Relations

Financial Dynamics
+44 (0)20 7831 3113
Ben Atwell

Susan Quigley
Notes for editors:
About Vectura

Vectura Group plc develops inhaled therapies principally for the treatment of respiratory diseases. Vectura’s main products target diseases such as asthma and chronic obstructive pulmonary disease (COPD), a growing market that is currently estimated to be worth in excess of $25 billion.

Vectura has six products marketed by its partners and a portfolio of drugs in clinical and pre-clinical development, a number of which have been licensed to major pharmaceutical companies. Vectura has development collaborations and license agreements with several pharmaceutical companies, including Novartis, Sandoz (the generics arm of Novartis), Baxter and GlaxoSmithKline (GSK).

Vectura seeks to develop certain programmes itself where this will optimise value. Vectura’s formulation and inhalation technologies 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