Sosei : Achievement of sales milestone for COPD products

Achievement of sales milestone for COPD products

Tokyo, Japan - 26 January 2017: Sosei Group Corporation ("Sosei"; TSE Mothers Index:4565) is pleased to confirm that the combined annual sales of Seebri® Breezhaler® (glycopyrronium) and Ultibro® Breezhaler® (indacaterol/glycopyrronium), as reported in Novartis Q4, 2016 results announcement yesterday, were USD512 million.

Under the terms of the Novartis Licence Agreement, as the total annual sales of these COPD products have now exceeded USD500 million in a calendar year, Sosei is entitled to receive a one-off milestone payment of USD5 million.

Peter Bains, CEO of Sosei said; "We are delighted to see continued strong growth of Ultibro® Breezhaler® in response to the FLAME study results and the updated GOLD 2017 report which recommended the first-line use of dual bronchodilators, such as Ultibro® Breezhaler®, in the treatment of the majority of symptomatic chronic obstructive pulmonary disease (COPD) patients. Additionally, the combined 2016 sales of both COPD products have now exceeded the $500m milestone payment threshold. We look forward to the launch of Seebri™ Neohaler® and Utibron™ Neohaler® in the US to further drive sales momentum."

We do not disclose further details of agreement with Novartis.

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Notes to Editors About Ultibro Breezhaler/Utibron Neohaler

Ultibro Breezhaler (indacaterol maleate/glycopyrronium bromide), a first-in-class dual bronchodilator, is approved in over 90 countries, including Japan and EU countries. It is a once-daily fixed-dose combination of indacaterol and glycopyrronium bromide, and in the EU is indicated as a maintenance bronchodilator treatment to relieve symptoms in adult patients with COPD. In the US, it was approved in October 2015 as a twice-daily inhaled, fixed-dose combination of indacaterol 27.5 mcg and glycopyrrolate 15.6 mcg, for the long- term maintenance treatment of airflow obstruction in patients with COPD, including chronic bronchitis and/or emphysema, under the brand name Utibron™ Neohaler®.

About Seebri Breezhaler/Seebri Neohaler

Seebri Breezhaler (glycopyrronium bromide), an inhaled LAMA is approved in over 90 countries and indicated as a once-daily maintenance bronchodilator treatment to relieve symptoms of patients with COPD. In the US, it was approved in October 2015 as a twice- daily inhaled monotherapy for the long-term maintenance treatment of airflow obstruction in patients with COPD, including chronic bronchitis and/or emphysema, under the brand name Seebri™ Neohaler® (glycopyrrolate 15.6 mcg).

Glycopyrronium and certain use and formulation intellectual property were exclusively licensed to Novartis in April 2005 by Sosei and Vectura.

Following the announcement on December 21, 2016 by Novartis, Sunovion Pharmaceuticals Inc. assumes US commercialization rights for Utibron Neohaler,

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Arcapta Neohaler and Seebri Neohaler. Novartis will continue to bring Ultibro Breezhaler, Onbrez Breezhaler and Seebri Breezhaler to patients with COPD outside of the US.

Ultibro® Breezhaler® Seebri® Breezhaler®,UtibronTM Neohaler®, Seebri™Neohaler® are trademarks of Novartis AG.

About Sosei

Sosei Group Corporation is an international biopharmaceutical company originating from Japan that discovers and develops innovative biopharmaceuticals for the treatment of Alzheimer's disease, schizophrenia, cancer, migraine, addiction, metabolic disease, and other indications. By utilizing its GPCR structure-based drug design platform technology, Sosei have established a product pipeline with first/best in class potential. Through development and commercialization partnerships, Sosei have already delivered two bronchodilators for COPD which generate significant and stable revenue streams that enable further growth. Sosei partners include Novartis, Allergan, AstraZeneca, MedImmune, MorphoSys, Teva, and Pfizer and we are actively looking for new partnerships to enhance the development of our products and help us deliver them to patients worldwide.

For further information about Sosei, please visit http://www.sosei.com/en/.

Contact for Sosei

Harumi BANSE, Investor Relations

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Sosei Group Corporate Forward-looking statements

This press release contains forward-looking statements, including statements about the discovery, development and commercialisation of products. Various risks may cause Sosei'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.

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