Galmed Pharmaceuticals said it has signed a definitive agreement to acquire Colospan, a commercial-stage medical device company focused on reducing complications from colorectal surgery. Upon closing, Colospan will become a wholly owned subsidiary of Galmed, repositioning Galmed as a gastrointestinal-focused medtech and biopharmaceutical platform that combines its public company infrastructure, cash reserves and GI clinical expertise with Colospan’s device technology and ongoing U.S. pivotal clinical program.
Colospan’s lead product, the CG-100 intraluminal bypass device, is designed as a minimally invasive alternative to protect the anastomosis, lessen patient burden and reduce the need for a diverting stoma, a temporary abdominal opening used to divert waste while the surgical connection heals. The device holds U.S. FDA Breakthrough Device Designation, is CE marked under the EU Medical Device Regulation and is ready for commercial launch in the European Union and Israel. Galmed plans to invest 6 million dollars to launch CG-100 in the second half of 2026 in Europe, initially focusing on Germany, Austria and Switzerland.
In the United States, CG-100 is currently for investigational use only under an investigational device exemption, with Colospan conducting a pivotal clinical trial intended to support a future FDA application. Galmed said that by combining resources, it aims to advance the pivotal study and deliver a tool that could change management of colorectal resection patients.
Galmed co-founder and chief executive officer Allen Baharaff said the planned acquisition fits the company’s long-term growth strategy and that Galmed intends to use its experience and resources to accelerate the CG-100 pivotal study and regulatory pathway.
Colospan founder and chief executive officer Boaz Assaf noted that colorectal cancer is the third most commonly diagnosed cancer in men and women, with about 1.9 million cases diagnosed worldwide each year, and that colorectal resection is the most common treatment to remove tumors. He said anastomotic leaks can occur in up to 21% of procedures, contributing to higher morbidity, mortality, longer hospital stays and increased costs, and that diverting stomas, while standard practice to prevent leaks, significantly affect quality of life and add burden to health systems. Assaf said Colospan was founded to address the clinical and economic impact of this issue.
Under the terms of the agreement, Colospan shareholders and SAFE holders will receive 2.5 million dollars in cash and 2.0 million dollars in Galmed ordinary shares at closing, subject to customary adjustments and escrow. The transaction, which has been unanimously approved by both companies’ boards of directors, is subject to customary closing conditions and is expected to close in the second quarter of 2026.
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