Launch of Utibron Neohaler in the US

Represents the latest combination therapy now available for the millions of patients living with COPD in the US.

Sunovion entered into an exclusive license agreement with Novartis for the US commercialisation rights to three of Novartis' COPD treatments, including Utibron and Seebri Neohaler (Seebri), on 21 December 2016.

Sunovion has confirmed that they also expect to launch Seebri in the US during the next 12 months.

Vectura is eligible to receive royalties on net sales of the product as well as certain milestones based on global calendar year combined net sales of Utibron Neohaler, Seebri Neohaler, Ultibro Breezhaler and Seebri Breezhaler. The royalties earned upon net sales of Utibron Neohaler are the same as those for Ultibro Breezhaler.

James Ward-Lilley, CEO of Vectura: "We are pleased with the confirmation of launch of Utibron in the US market by Sunovion. Utibron is an important dual-bronchodilator handheld inhaler that is well aligned to the recently updated GOLD guidelines and it represents the latest combination therapy now available for the millions of patients living with COPD in the US.  We look forward to Sunovion progressing the launch of Seebri later this year. We are confident Sunovion will be highly effective in the commercialisation of Utibron and Seebri given its strong established US respiratory commercialisation expertise and track record in COPD.

"Royalties earned from sales of Utibron in the US will make a further contribution to the substantial recurring and growing royalty stream we already receive from Novartis for sales of Ultibro Breezhaler and Seebri Breezhaler in Europe and the Rest of the World."