#Israel #Ramat Gan #Galmed Pharmaceuticals #Colospan #CG-100

Galmed Pharmaceuticals to Acquire Colospan

In an exciting development for the healthcare landscape, Galmed Pharmaceuticals Ltd. has officially announced its agreement to acquire Colospan Ltd., a company specializing in innovative medical devices. This significant acquisition not only reflects Galmed's commitment to expanding its portfolio but also aims to tackle the challenges presented in the field of colorectal surgery, which has a huge unaddressed market potential estimated at $6 billion.

The cornerstone of this strategic move is Colospan’s flagship product, the CG-100 Intraduodenal Bypass Device. This device, currently recognized with FDA Breakthrough Device Designation and CE marking, is engineered to mitigate one of the most critical issues faced in colorectal surgery—anastomotic leaks. The device is designed to safeguard surgical connections during recovery, thus preventing the necessity for a diverting stoma, which can adversely affect the quality of life for patients.

Galmed has recognized that colorectal cancer is one of the key health challenges globally, diagnosed in approximately 1.9 million individuals annually. Colorectal resections are a common surgical practice for treating this type of cancer, yet complications, notably anastomotic leaks, occur in about 21% of cases. These leaks lead to increased healthcare costs, extended hospital stays, and even higher mortality rates, thus driving the need for innovative solutions like the CG-100.

Upon completion of this acquisition, which is expected to close in the second quarter of 2026 after gaining necessary approvals, Colospan will operate as a wholly owned subsidiary of Galmed. This transition is set to establish a comprehensive gastrointestinal-focused platform in both medtech and biopharmaceutical sectors. The integration of Colospan's device technology with Galmed's existing clinical and operational resources promises to accelerate CG-100’s pivotal study and streamline the pathway to achieving FDA regulatory approval.

Galmed co-founder and CEO, Allen Baharaff, remarked on this acquisition, noting that it stands as a pivotal moment in Galmed's growth trajectory. The synergies expected from combining Galmed's robust public infrastructure and clinical expertise with Colospan’s innovative technology are seen to significantly enhance the company’s ability to address colorectal care.

In terms of financials, Colospan's shareholders will receive $2.5 million in cash, alongside $2 million in Galmed ordinary shares at closing, subject to typical adjustments. This financial setup underlines Galmed's serious intent to not just acquire but to nourish and expand Colospan's operations within its broader corporate framework.

Looking ahead, Galmed plans to direct approximately $6 million to launch Colospan's CG-100 device in Europe, targeting initial markets in Germany, Austria, and Switzerland within the second half of 2026. This rollout aligns with Galmed’s strategy to address significant unmet needs in colorectal surgery and enhance patient outcomes on a global scale.

With a solid backing of both companies’ boards, this acquisition is a strategic move that could redefine standards in colorectal surgical practices, promising a stoma-free future for countless patients facing the realities of rectal surgeries. The commitment from both management teams showcases a robust dedication to exploiting cutting-edge medical technology aimed at improving patient care and outcomes, fostering a more resilient healthcare ecosystem as a result.