The Switzerland international has agreed a four-year deal at the club as a replacement for Max Kruse, who has joined Wolfsburg
Having seen Max Kruse leave for Wolfsburg, Borussia Monchengladbach have secured the services of Switzerland forward Josip Drmic on a four-year deal from Bayer Leverkusen.
The 22-year-old moved to the BayArena from Nuremberg prior to last season, but struggled to make an impact at Leverkusen, having been used primarily as a substitute.
He will now be tasked with helping cover Kruse's absence in a squad that finished third in the Bundesliga last season.
"I will give everything to play as many matches and help the team both in the Bundesliga and in Europe," he told the club's official website.
"Of course it is great that we are in the Champions League and competing at the highest level with other top teams from Europe.
"The most important thing now is to get used to my new environment and get to know my new team-mates."
Drmic will line up alongside fellow Switzerland internationals Yann Sommer and Granit Xhaka for Monchengladbach next term.