The 22-year-old striker has scored 23 goals in 58 Bundesliga games since arriving from Switzerland. Drmic has agreed a four-year-deal with the Foals who finished third in the league last season.
Borussia Mönchengladbach have completed the signing of Bayer Leverkusen and Switzerland international striker Josip Drmic.
The 22-year-old Swiss striker scored six goals in 38 appearances for Leverkusen, who signed him from Nuremburg in 2014 for around seven million euros ($7.8 million).
But Drmic's first-team action was limited behind Stefan Kiessling, leaving him considering his options even in the January transfer window.
Gladbach, in next season's Champions League, has reportedly shelled out around eight million euros for the striker who could be a replacement for the outgoing Max Kruse, who joined Wolfsburg earlier in the summer.
"We were interested in signing Josip Drmic last year but on that occasion he chose to join Leverkusen," said Sporting Director Max Eberl on the club's official website. "We're delighted that everything has come together now. Josip is a quick and dangerous attacker and is going to fit in well."
After arriving from Swiss side FC Zurich, Drmic scored 17 goals in 34 games for Nuremburg, but couldn't prevent the club from being relegated to the second division.
"I'm just happy that all parties are satisfied and I hope for a successful future at Borussia," added the player.
rd/jh (SID, dpa)