Galmed Pharmaceuticals terminates licensing deal, plans minority stake

Galmed Pharmaceuticals Ltd. (NASDAQ: GLMD) terminated a licensing agreement with Entomus s.r.o. for development and commercialization of a Self-Emulsifying Drug Delivery System formulation, according to a company statement.

The pharmaceutical company ended the binding term sheet following additional due diligence and discussions between the parties. The original agreement would have granted Galmed an exclusive license to develop and commercialize the SEDDS formulation.

Instead of leading the project directly, Galmed plans to acquire up to 25% of share capital in a new UK-based company established for developing and commercializing the SEDDS formulation. The investment remains subject to execution of definitive documentation and approval from Galmed's board of directors.

The company described the restructured arrangement as a way to modify and reduce risk in its participation in the project. The termination agreement was executed on August 25, 2025.

SEDDS formulations are designed to improve drug solubility and bioavailability by forming emulsions in the gastrointestinal tract.

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