Hyderabad, October 1: Indian pharmaceutical major Gland Pharma Limited has announced a $21 million (approximately ₹175 crore) investment in its US subsidiary to acquire a 60% controlling stake in the newly incorporated Novelstar Pharma Inc. The transaction is aimed at expanding Gland Pharma’s presence and market reach in the United States.
According to a regulatory filing made today, the company’s Board of Dirctors has approved a capital infusion of $21 million into Gland Pharma USA, its step-down subsidiary.
Gland Pharma USA Inc. will use the cash investment to buy 60% of the equity share capital of Novelstar Pharma Inc. The company is newly incorporated and has no commercial operations or revenues as of now.
The remaining 40% stake in Novelstar Pharma will be held by a wholly owned subsidiary of China-based Fosun Pharma, the majority owner and promoter of Gland Pharma.
The transaction is classified as a related-party deal and is scheduled to be completed by October 31, 2026. Upon completion, Novelstar Pharma Inc. will operate as a subsidiary of Gland Pharma USA Inc. and a step-down subsidiary of Gland Pharma Limited.
The transaction is aimed to be viewed favourable by the markets, as Gland’s transparency should’t be concerning. Besides, Gland’s positive cash flows and balance sheet status is expected to help here, given its recent Q1 FY27 performance where its profits rose 47% from the same period last year.
