Gland Pharma backs $21M bet on 60% of US's NovelStar Pharma

What's the deal? Gland Pharma's board approved a $21 million (roughly US$23.8M) investment into its wholly-owned subsidiary, Gland Pharma USADealroom has a profile for this one. Try Dealroom →, to acquire a 60% stake in newly incorporated NovelStar PharmaDealroom has a profile for this one. Try Dealroom →. Once closed, NovelStar becomes a step-down subsidiary of the Indian injectables maker.

Why now? The transaction is set to complete by October 31, 2026, giving Gland direct operational footing in the US sterile injectables market. Taking a controlling stake in a new entity lets it build regional development infrastructure without the cost of full integration.

What's the endgame? Gland wants faster, more flexible product development in the US — its key export market. The 60% structure keeps it in control while leaving room to co-develop complex sterile assets.

The fine print: This is a related party transaction. NovelStar sits within the Fosun PharmaDealroom has a profile for this one. Try Dealroom → group, which holds a 58.25% promoter stake in Gland Pharma. Such deals typically draw regulatory and shareholder scrutiny in India.

By the numbers: The deal lands alongside strong results. Gland's Q1 FY27 consolidated net profit rose 47% year on year to US$43M, giving it the balance sheet to fund the US push.

The signal: The global contract development and manufacturing (CDMO) market is consolidating as Indian drugmakers chase complex injectables and sterile technology bases in Western markets. Gland's move is a modest but pointed step to secure that foothold.

Read more: sahi.com

Image credit: Generated with Gemini