Dear Stockholders

Dear Shareholders,

For Savara, 2017 was a transformative year with notable corporate achievements on our journey of building Savara into a prominent orphan lung disease company. We successfully transitioned Savara to the public markets and raised approximately $100 million from institutional and strategic investors. On the development front, we advanced our lead orphan lung disease products, Molgradex and AeroVanc, into Phase 3 development and expanded the Molgradex program into a new indication opportunity, nontuberculous mycobacteria (NTM) lung infection. Savara common stock was also uplisted to the NASDAQ Global SelectMarket® and added to the NASDAQ Biotechnology Index®. Additionally, we received the Cystic Fibrosis Foundation’s continued support and strong validation of our AeroVanc program with their $5M award to advance our Phase 3 development efforts.

We have continued to make progress in the development of Molgradex for the treatment of autoimmune pulmonary alveolar proteinosis, or PAP. Last year, the Company announced its expedited U.S. development strategy for Molgradex, which expanded and modified its ongoing IMPALA study in PAP to serve as a global pivotal study for U.S. registration purposes. The IMPALA study has progressed steadily, with more than 80% of the 90 patients now enrolled. In December, we submitted an investigational new drug (IND) application to the FDA which would allow us to open U.S. sites and complete enrollment in the IMPALA study with patients from all major territories, including the U.S., EU, and Japan. The IND submission also adds a blinded interim check of the variability of key secondary endpoints which is designed to provide an opportunity to confirm or modify the study sample size, if necessary.

Last September, we announced the initiation of our AVAIL study, a Phase 3, randomized, double-blind, placebo-controlled study of AeroVanc, the first inhaled antibiotic being developed for the treatment of persistent MRSA lung infection in individuals living with cystic fibrosis (CF). We believe AeroVanc represents a promising opportunity to make significant advancement in the treatment of this debilitating infection, which is associated with increased use of intravenous antibiotics, increased hospitalizations, a faster decline of lung function, as well as shortened life expectancy. Having a high level of enthusiasm towards the study at our investigative sites, we are off to a strong start with most of the sites now actively enrolling patients. Based on the first full quarter of enrollment, we expect to complete enrollment by Q1 2019.

We have also continued to grow our team in order to effectively manage the expanding activities in our programs, to prepare for eventual regulatory submissions and commercial manufacturing, as well as further growth of the company. Our most recent addition is Peter Ginsberg, who joined us as Vice President of Business Development, bringing a wealth of experience in biopharma business development and strategic planning, in addition to a unique perspective as a former senior biotechnology analyst and healthcare institutional investor. We see his impressive track record in generating growth through business development transactions with a specific focus on orphan lung disease opportunities as a perfect match to help further our growth strategy.

We believe that 2018 will continue as another year of achievement with expected business and clinical program milestones including the initiation of a Molgradex Phase 2a NTM study, the read-out of topline results in our Aironite INDIE Phase 2 study, and topline Molgradex IMPALA results by year end, pending the blinded interim check and sample size analysis outcome.

Key to our overall strategy of increasing our visibility, we plan to continue with active engagement in the investment community through investor meetings, KOL events and industry conferences. Our analyst coverage is growing with recent initiation from Ladenburg Thalmann (Michael Higgins) who joins our other four research analysts from Jefferies (David Steinberg), JMP Securities (Liisa Bayko), Canaccord Genuity (Dewey Steadman) and ROTH Capital Partners (Jotin Marango).

In closing, we remain passionate about the potential of our treatments to have a positive impact on the lives of patients and we look forward to continued growth and value creation for you, our shareholders. We sincerely appreciate your continued support and look forward to keeping you updated during the year.

Rob Neville

Savara cautions you that statements herein that are not a description of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words referencing future events or circumstances such as “expect,” “intend,” “plan,” “anticipate,” “believe,” and “will,” among others. Such statements include, but are not limited to, statements relating to our business opportunity, our investor relations strategy, our progress, our product candidates, our strategy, the timing of milestones and goals for our product candidates (including enrollment targets), our uses of cash and our future successes. Savara may not actually achieve any of the matters referred to in such forward looking statements, and you should not place undue reliance on these forward-looking statements. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are based upon Savara’s current expectations and involve assumptions that may never materialize or may prove to be incorrect. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, which include, without limitation, risks and uncertainties associated with the outcome of ongoing clinical trials for our product candidates, the ability to project future cash utilization and reserves needed for contingent future liabilities and business operations, the availability of sufficient resources for Savara’s operations and to conduct or continue planned clinical development programs, the ability to obtain the necessary patient enrollment for our product candidates in a timely manner, the timing and ability of Savara to raise additional equity capital as needed to fund continued operations; the ability to successfully develop our product candidates, and the risks associated with the process of developing, obtaining regulatory approval for and commercializing drug candidates that are safe and effective for use as human therapeutics. All forward-looking statements are expressly qualified in their entirety by these cautionary statements. For a detailed description of our risks and uncertainties, you are encouraged to review our documents filed with the SEC including our recent filings on Form 8-K, Form 10-Q and Form 10-K. You are cautioned not to place undue reliance on our forward-looking statements herein, which speak only as of January 29, 2018 which is the date on which they were made. Savara undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after such date, except as may be required by law.