Galmed Pharmaceuticals to Acquire Colospan, targeting $6B GI market

Galmed Pharmaceuticals (NASDAQ:GLMD) has entered into a definitive agreement to acquire Colospan, a commercial-stage medical device company specializing in gastrointestinal surgery solutions.

The transaction, approved by the boards of both companies, is expected to close in the second quarter of 2026 and will reposition Galmed as a integrated GI-focused medtech and biopharmaceutical platform.

The deal is valued at $4.5 million, consisting of $2.5 million in cash and $2 million in Galmed ordinary shares.

Following the acquisition, Colospan will operate as a wholly owned subsidiary of Galmed.

Central to the acquisition is Colospan’s flagship product, the CG-100 intraluminal bypass device.

The device is designed to protect colorectal anastomoses and minimize the necessity for diverting stomas, which are common and burdensome complications in colorectal surgery.

The technology holds FDA Breakthrough Device designation and is currently undergoing a U.S. pivotal investigational device exemption (IDE) trial.

Beyond the acquisition cost, Galmed has outlined a strategic investment plan of $6 million to facilitate the commercial launch of the CG-100 in the European market during the second half of 2026, with an initial focus on Germany, Austria, and Switzerland.

The device has already received CE marking under the EU’s Medical Device Regulation (MDR).