Galmed to acquire Colospan for $4.5M in $6B GI market push

Galmed Pharmaceuticals Ltd. agreed to acquire Colospan Ltd. for $4.5 million in a cash-and-stock deal, adding an FDA-designated colorectal device to create a GI-focused platform targeting a $6 billion market.

"The acquisition of Colospan is a defining moment for Galmed and we believe is the type of asset that moves the needle," said Allen Baharaff, co-founder and chief executive officer of Galmed Pharmaceuticals.

Colospan shareholders and SAFE holders will receive $2.5 million in cash and $2 million in Galmed ordinary shares at closing, subject to customary adjustments and escrow. Galmed also plans to invest $6 million to launch Colospan's CG-100 intraluminal bypass device in Europe during the second half of 2026, with an initial focus on Germany, Austria and Switzerland.

The deal transforms Galmed, a biopharmaceutical company with a $4.6 million market capitalization, into a diversified GI-focused medtech and biopharmaceutical platform. Colospan's CG-100 device addresses anastomotic leaks — a failure of the surgical connection that occurs in as many as 21 percent of colorectal resection procedures — and the diverting stomas surgeons use to manage them. Colorectal cancer is the third most commonly diagnosed cancer globally, with about 1.9 million cases annually, according to Colospan Chief Executive Officer Boaz Assaf.

The CG-100 received FDA Breakthrough Device Designation and is CE marked under the European Union's Medical Device Regulation. Colospan is conducting a U.S. pivotal IDE trial designed to support a future FDA application. The device is not approved for commercial use in the U.S.

Roth Capital Partners served as financial advisor to Galmed. Meitar Law Offices provided legal counsel to Galmed, and Matry Meiri Wacht & Co. advised Colospan. The transaction, approved by both companies' boards, is expected to close in the second quarter of 2026.

The deal comes as Galmed has been expanding its pipeline beyond its flagship asset Aramchol, a first-in-class synthetic fatty acid-bile acid conjugate under evaluation for liver disease and oncological indications. Recent developments include a brain-penetrant formulation for synucleinopathies and a collaboration with Tissue Dynamics Ltd. on cardiac fibrosis. The Colospan acquisition marks a sharper pivot toward medical devices, giving Galmed a commercial-stage product with European regulatory clearance and an active U.S. clinical program.

This article is for informational purposes only and does not constitute investment advice.