Gland Pharma to Invest $21 Million in US Arm, Take 60% Stake in Novelstar Pharma
The Hyderabad injectables maker will partner with group company Fosun Pharma USA in a new US entity; the deal is expected to close by 31 October.
Hyderabad-based Gland Pharma has approved an investment of $21 million in its wholly owned subsidiary Gland Pharma USA Inc., which will use the funds to acquire a 60% stake in Novelstar Pharma Inc.
The infusion raises Gland USA's share capital from $0.5 million to $21.5 million. Once the transaction is complete, Novelstar will become a step-down subsidiary of Gland Pharma.
Partnership with Fosun
The remaining 40% of Novelstar will be held by Fosun Pharma USA Inc., a fellow subsidiary of Gland's parent, Shanghai Fosun Pharmaceutical. Novelstar is a newly formed US company, incorporated on 30 September 2026, with no operating history; its post-acquisition capital will be $35 million.
Gland said the investment is meant to support its expansion in the United States through a strategic partnership. The deal is expected to be completed by 31 October 2026.
Board change
The company also said Wenjie Zhang has resigned as a non-executive director and Xingli Wang, President of Fosun Pharma, has been appointed in his place with effect from 1 October 2026.
Source: Medical Dialogues
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