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Sosei and Vectura Announce Start of Phase III Clinical Study With NVA237
Date:6/28/2009

are expected to be filed by Novartis for both NVA237 and QVA149 in 2011.

Mr Shinichi Tamura, President & CEO of Sosei, commented:

"This represents an important milestone in the clinical development of NVA237 and we look forward also to the anticipated commencement of the Phase III study for QVA149 towards the end of this year."

Dr Chris Blackwell, Chief Executive of Vectura, added: "The Phase II studies demonstrated that NVA237 provides sustained 24-hour bronchodilation in patients with moderate to severe COPD. As it now enters the final stage of clinical development before market, confidence in the product is at a new high as we anticipate confirmation of such benefit in a large target patient population."

Notes for Editors:

About the NVA237 and QVA149 licence agreement with Novartis

Sosei and Vectura Group plc concluded a global development and commercialisation agreement with Novartis in April 2005 for their collaborative product NVA237. Novartis is responsible for developing and commercializing NVA237 both as a monotherapy and in combination with indacaterol, its once daily, long-acting beta-2 agonist, as QVA149.

Under the terms of the agreement, Sosei and Vectura to date have each received $15 million and will each receive up to $172.5 million for achieving pre-agreed clinical, regulatory and commercialisation targets for both the monotherapy and combination product. These potential milestones total up to $375 million. In addition, royalties on product sales will be paid for the monotherapy and the combination product. If additional combination products are developed by Novartis, using NVA237, further milestones and royalties will be payable.

About COPD

COPD is a chronic obstruction of the airways which in the developed world is caused primarily by smoking. Symptoms include chronic bronchitis and/or emphysema whi
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