Galmed Pharmaceuticals announced that it has entered into a definitive agreement to acquire Colospan, a commercial-stage medical device company focused on addressing anastomotic leak complications associated with colorectal surgery. Upon completion of the transaction, Colospan will become a wholly owned subsidiary of Galmed, repositioning the company as a gastrointestinal-focused medtech and biopharmaceutical platform.
The acquisition combines Galmed’s public company infrastructure, cash resources and gastrointestinal clinical expertise with Colospan’s proprietary technology and ongoing U.S. pivotal clinical program. Colospan’s lead product, the CG-100 intraluminal bypass device, is designed to protect the surgical connection following colorectal resection and reduce the need for diverting stomas, which require patients to use an external waste collection bag during the healing process.
CG-100 has received FDA Breakthrough Device Designation and is CE marked under the European Union’s Medical Device Regulation. The device is currently being evaluated in a pivotal investigational device exemption trial in the United States to support a future FDA application. Galmed plans to invest approximately $6 million to launch the device in Europe during the second half of 2026, initially focusing on Germany, Austria and Switzerland.
Colorectal cancer affects approximately 1.9 million people worldwide annually, and anastomotic leaks occur in up to 21% of colorectal surgeries, increasing complications, mortality rates, hospital stays and healthcare costs. Colospan developed CG-100 as a minimally invasive alternative intended to improve outcomes and reduce the quality-of-life burden associated with temporary stomas.
Under the terms of the agreement, 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 provisions. The boards of directors of both companies unanimously approved the transaction, which is expected to close in the second quarter of 2026.
Roth Capital Partners served as financial advisor to Galmed. Meitar Law Offices acted as legal counsel to Galmed, while Matry Meiri Wacht & Co. represented Colospan.
KEY QUOTES:
“CG-100 is a category leader having an FDA Breakthrough Device Designation and a CE (MDR) European regulatory status ready for commercialization. The expected acquisition of Colospan is a defining moment for Galmed and we believe is the type of asset that moves the needle.
The acquisition of Colospan aligns perfectly with our long-term growth strategy. We are bringing more than 25 years of clinical execution capabilities together with our public company experience and resources to accelerate the CG-100 pivotal study to obtain FDA regulatory approval. We believe our shared vision will allow us to scale Colospan’s technologies faster, and substantially accelerate our path to success.”
Allen Baharaff, Co-founder and Chief Executive Officer, Galmed Pharmaceuticals
“Colorectal cancer is the third most commonly diagnosed cancer in both men and women with approximately 1.9 million diagnosed cases worldwide annually. Colorectal resection is the most common medical treatment for colorectal cancer and is performed on the majority of patients worldwide to remove the tumor. Anastomotic leaks, a failure of the surgical connection, occur in up to 21% of procedures contributing to increased morbidity, mortality, longer hospital stays, and higher healthcare costs.
To prevent clinical leaks, surgeons routinely create a diverting stoma: a temporary abdominal opening that redirects waste to an external bag while the anastomosis heals. While clinically standard, living with a stoma significantly impairs quality of life and creates substantial clinical and economic burden for healthcare systems. Colospan was founded specifically to answer the clinical and economic burden associated with this problem, creating a stoma-free future for patients.”
Boaz Assaf, Founder and Chief Executive Officer, Colospan
