Galmed completes Colospan acquisition under restructured terms

Galmed Pharmaceuticals Ltd. (NASDAQ: GLMD) has completed its acquisition of Colospan Ltd., a medical device company based in Kfar Saba, Israel, making Colospan a wholly owned subsidiary of Galmed.

The acquisition terms were restructured to reduce dilution to existing shareholders. Under the revised agreement, a $2.0 million ordinary share payment was replaced with an $800,000 cash payment and a performance-based earnout capped at $2.0 million, beginning in the third quarter of 2027. The earnout is set at 7% of net sales revenue exceeding $5.0 million and rises to 9% for net sales revenue exceeding $12.0 million. The earnout accelerates upon a strategic transaction involving substantially all of Colospan's acquired business or intellectual property, or if Galmed raises at least $17.5 million in aggregate gross proceeds through equity financings.

Galmed cited a cash balance of $15.6 million as of March 31, 2026, as enabling the additional cash payment.

Colospan's flagship product, CG-100, is an intraluminal bypass device designed to protect colorectal anastomoses and reduce the need for diverting stomas. The device is CE marked under the EU Medical Device Regulation and approved in Israel, and carries a dedicated OPS code in Germany intended to support reimbursement. CG-100 holds FDA Breakthrough Device Designation but is not approved for commercial use in the United States.

Across four clinical trials conducted in Europe and Israel involving 97 patients, 90% of those treated with CG-100 avoided stoma creation. Safety data showed a 0% mortality rate and a 3% anastomotic leak rate among treated patients.

Galmed said it plans a pan-European commercial launch of CG-100 and expects to begin generating revenue in 2026. Real-world patient data is planned for submission to the FDA to support a pivotal study.

According to a statement attributed to Allen Baharaff, co-founder and chief executive officer of Galmed, the company intends to combine CG-100 commercialization with the advancement of its drug candidate Aramchol in gastrointestinal oncology indications.

You May Also Be Interested In

• Silvercorp GC Mine mineral resources rise 59% in updated report
• BioNxt closes $2M private placement at $0.33 per unit
• Eldorado Gold elects nine directors at 2026 annual meeting