Concord Biotech Acquires 75% Stake in Stellon Biotech for $1.5 million
By Shishta Dutta | Updated at: Oct 17, 2025 01:44 PM IST
Ahmedabad, July 2, 2025 – Concord Biotech Ltd (NSE: CONCORDBIO, BSE: 543960) has bought a 75% ownership in Stellon Biotech Inc, a company based in the U.S. It paid $1.5 million for 15 million shares.
The goal of this strategic move is to make the company’s presence in the U.S. pharmaceutical industry stronger, especially in formulations and CDMO services. The purchase comes after a good fourth quarter of FY25, when Concord’s revenue rose by around 35% year over year to ₹430 crore and its net profit rose by about 47% to ₹140 crore.
It also follows the recent U.S. FDA clearance of its Teriflunomide tablets, which adds to the company’s regulatory momentum in the U.S. Concord is in a good place to speed up its global growth since it has a strong return on equity (ROE) of 20.6%, operating margins of 44%, and more interest from institutions. The last time the stock was observed trading on the NSE was at ₹1,769.70.
Deal Summary
| Particulars | Details |
|---|---|
| Company Acquired | Stellon Biotech Inc |
| Country of Incorporation | United States (Delaware) |
| Date of Incorporation | December 19, 2024 |
| Industry | Biopharmaceuticals |
| Total Shares Subscribed | 15 million |
| Price per Share | USD 0.0001 |
| Total Investment | USD 1,500 |
| Stake Acquired | 75% |
| Consideration Type | Cash |
| Related Party Transaction | Yes (subsidiary) |
| Allotment Timeline | Within 90 days of investment |
Purpose of Investment
According to the company, Stellon Biotech Inc has been specifically established to serve as Concord’s commercial arm in the United States, focusing on:
- Marketing and distribution of Concord’s pharmaceutical and biotech products
- Handling regulatory compliance, inventory, invoicing, customer service, and returns
- Collaborating with local affiliates or subcontractors, under Concord’s oversight
The strategic objective is to accelerate Concord’s market penetration in the US by leveraging a local entity for operational and regulatory agility.
Regulatory Context
The disclosure was made in compliance with Regulation 30 of the SEBI (LODR) Regulations, 2015, supported by SEBI circular SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The transaction qualifies as a related party transaction due to Stellon becoming a subsidiary, though the investment is confirmed to be at arm’s length.
About Stellon Biotech Inc
| Particulars | Details |
|---|---|
| Registration No. | 20244546292 |
| Date of Incorporation | December 19, 2024 |
| Net Worth | USD 500 (as on July 1, 2025) |
| Turnover | Nil (Pre-revenue phase) |
| Share Capital | Authorised: 25 million shares |
| Issued: | 5 million shares |
| Business Function | Commercialisation, operations, regulatory management for Concord’s US business |
About Concord Biotech
Concord Biotech Ltd is a vertically integrated biotechnology firm engaged in the development, manufacture, and marketing of fermentation-based APIs and formulations, with a significant presence in immunosuppressants. It is a publicly listed company on both the NSE and BSE.
This investment helps Concord reach its goal of expanding globally. This is by establishing a US-based platform for selling products and following the rules, which brings it closer to its customers in a crucial pharmaceutical market.
REF: https://nsearchives.nseindia.com/corporate/CONCORD_02072025102858_Upload.pdf
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