Gland Pharma has approved an investment of up to $21 million in its US subsidiary, Gland Pharma USA Inc., to fund the acquisition of a 60% stake in Novelstar Pharma Inc. 

The transaction is aimed at expanding the company’s presence in the US market and is expected to be completed by October 31, 2026. Under the proposed structure, Gland Pharma USA will subscribe to 60% of Novelstar Pharma’s equity through a cash investment. 

After the transaction, Novelstar Pharma will become a step-down subsidiary of Gland Pharma. The remaining 40% stake will be held by Fosun Pharma USA Inc., an entity within Gland Pharma’s promoter group.

Novelstar Pharma is a newly incorporated US company and currently has no operating history or revenue. Its post-acquisition share capital is expected to stand at $35 million. Gland Pharma’s investment will therefore provide the majority of the capital required for the new US-based entity as it develops its business.

Gland Pharma USA was incorporated in March 2022 and currently operates as a wholly owned step-down subsidiary. Its reported turnover was $483,808 in FY24, $87,342 in FY25 and nil in FY26. The latest investment is classified as a related-party transaction, although the company said it falls under an exemption applicable to transactions involving wholly owned subsidiaries whose accounts are consolidated.

The investment comes as Gland Pharma continues to strengthen its global pharmaceutical business. The company has operations across multiple markets and focuses on complex injectable products, including sterile injectables, oncology and ophthalmic products. 

It has also been expanding its contract development and manufacturing organisation (CDMO) capabilities through acquisitions and partnerships.

The company also announced a change on its board. Wenjie Zhang resigned as a Non-Executive and Non-Independent Director citing other commitments, while Xingli Wang, President of Fosun Pharma, has been appointed as an Additional Director. The appointment will require shareholder approval through postal ballot and e-voting.

The Novelstar acquisition gives Gland Pharma a new US-based platform while strengthening its links with the wider Fosun Pharma group. 

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