The investment is aimed at expanding Gland Pharma’s business in the US. The transaction is expected to be completed by October 31, 2026.
Once completed, Novelstar Pharma will become a subsidiary of Gland Pharma USA and a step-down subsidiary of Gland Pharma.
Novelstar was incorporated in the US on September 30 and currently has no business or turnover. Its share capital will rise to $35 million following the investment.
Gland Pharma USA will hold 60% of Novelstar, while Fosun Pharma USA, a wholly owned subsidiary of Shanghai Fosun Pharmaceutical Group and a fellow subsidiary of Gland Pharma promoter Fosun Pharma Industrial, will hold the remaining 40%.
The investment will be made in cash.
Gland Pharma USA is currently a step-down subsidiary of Gland Pharma and is proposed to become a wholly owned subsidiary. Its turnover stood at $87,342 in FY25, down from $483,808 in FY24. It reported no turnover in FY26.
Gland Pharma reshuffles board
Separately, Gland Pharma’s board accepted the resignation of Wenjie Zhang as a non-executive, non-independent director with effect from October 1. Zhang cited pre-occupations as the reason for his resignation.
The company has appointed Xingli Wang as an additional non-executive, non-independent director with effect from October 1. The appointment will be subject to shareholder approval through postal ballot and e-voting.
Wang is president of Fosun Pharma and also heads its Global R&D Center and innovative medicine division. He is a non-executive director of Shanghai Henlius, a Fosun Pharma subsidiary listed in Hong Kong.
Before joining Fosun Group in 2023, Wang held positions at the University of New South Wales, Baylor College of Medicine, Schering-Plough and Novartis.
Following the changes, Gland Pharma has realigned its board committees with effect from October 1. The company said the composition of its Audit, Nomination and Remuneration, Risk Management, Corporate Social Responsibility and ESOP Compensation committees remains unchanged.
Dr Jia Ai Zhang has joined the Stakeholders’ Relationship and Share Transfer Committee, replacing Wenjie Zhang.
Gland Pharma shares closed at ₹2,866 on October 1, down 1.15%, or ₹33.40, from the previous close.
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