Board approves USD 21 million investment in US arm; 60% stake in Novelstar Pharma

Board approved USD 21 million investment in Gland Pharma USA Inc.

Thu 1 Oct 2026

Investment Amount

USD 21 million

Stake Subscription

60% of the equity share capital of Novelstar Pharma Inc.

Other Shareholder

Fosun USA will hold 40%

Completion Timeline

expected by October 31, 2026

Gland USA Share Capital Post-Investment

USD 21,500,000

Investment approved

• The Board approved an investment of USD 21 million by the Company in Gland Pharma USA Inc.
• Gland USA proposes to use the funds to subscribe to 60% of the equity share capital of Novelstar Pharma Inc., a newly incorporated company in the United States of America.
• Consideration is by way of cash; completion is expected by October 31, 2026.
• On completion, Novelstar will become a subsidiary of Gland USA and a step-down subsidiary of the Company.

The figures in the update

• Share capital of Gland USA before the proposed investment: USD 500,000; after the proposed investment: USD 21,500,000.
• Amount of investment: USD 21,000,000.
• Share capital of Novelstar at incorporation: NIL; post-acquisition: USD 35,000,000.
• Gland USA turnover: FY26 – NIL, FY25 – USD 87,342, FY24 – USD 483,808.
• Novelstar turnover: NIL.
• There will be no change in the proposed percentage of shareholding of the Company in Gland USA, which will continue to be a wholly-owned subsidiary.

Who else holds a stake

• Fosun Pharma USA Inc., a wholly-owned subsidiary of Shanghai Fosun Pharmaceutical (Group) Co. Ltd and a fellow subsidiary of Fosun Pharma Industrial Pte. Ltd, the promoter of the Company, will own equity shares amounting to 40% of the equity share capital of Novelstar.

How the transaction is treated

• The investment in Gland USA is a related party transaction, as Gland USA is a related party, and is being undertaken at arm's length. It is exempt from the approval requirements given Regulation 23(5)(b), as it is between the Company and its wholly owned subsidiary whose accounts are consolidated and placed before the shareholders.
• Prior approval of the Audit Committee and the approval of the Board of Directors have been received, and the promoter, promoter group and group companies have no other interest in the said transaction.
• The investment into Novelstar is stated not to be a related party transaction.
• Brief details of any governmental or regulatory approvals required for the acquisition: Not Applicable.

Board changes approved at the same meeting

• Mr. Wenjie Zhang (DIN: 10727581), Non-Executive & Non-Independent Director, tendered his resignation to his office as a Director due to his pre-occupations; the resignation was accepted with immediate effect.
• Mr. Xingli Wang (DIN: 11899926), aged 63, was appointed as an Additional Director (Non-Executive & Non-Independent Director) with effect from October 01, 2026. He is currently the President of Fosun Pharma and holds positions including Chief Executive Officer of the Global R&D Center and Chief Executive Officer of the innovative medicine division, Fosun Pharma.
• The approval of the members for the appointment will be obtained within the stipulated timelines, through a postal ballot and e-voting.
• The Committees of the Board have been realigned with effect from October 01, 2026, following these changes among the Board of Directors.

What to take away

• The update states the proposed investment is intended to facilitate expansion of the Company's business in the United States of America through a strategic partnership.
• Gland USA is currently a wholly-owned step-down subsidiary of the Company and is in a similar line of business as the Company.
• Novelstar is a newly incorporated entity in the United States of America, does not have any business and its turnover is stated as NIL, so the operational build-up of the new entity is something investors would track over time.

Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.