According to reports from CNBC TV18, Gland Pharma's board has approved a $21 million investment in its US subsidiary, Gland Pharma USA Inc., which will use the funds to acquire a 60% stake in newly incorporated Novelstar Pharma Inc. 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. The board meeting held on October 1, 2026 authorized the capital infusion into Gland Pharma USA Inc., which is proposed to become a wholly owned subsidiary.
As reported by CNBC TV18, Novelstar Pharma 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 is structured as cash consideration and is intended to facilitate business expansion in the United States. The transaction is classified as a related party transaction but is exempt from certain approval requirements under Regulation 23(5)(b) of the Listing Regulations as it involves a wholly owned subsidiary whose accounts are consolidated.
According to CNBC TV18, 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 USA Inc., incorporated in March 2022, currently operates as a wholly owned step-down subsidiary. The transaction is structured as cash consideration and is intended to facilitate business expansion in the United States.
As reported by CNBC TV18, 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.
According to CNBC TV18, Gland Pharma shares closed at ₹2,866 on October 1, down 1.15%, or ₹33.40, from the previous close. 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. The structure of the Novelstar ownership reveals a significant promoter-linked interest, with the expansion vehicle jointly controlled by entities within the broader Fosun ecosystem, aligning Gland Pharma's US growth strategy closely with its parent group's interests.
