Galmed Pharmaceuticals Ltd. (GLMD) fell more than 16% after the company announced a definitive agreement to acquire Colospan Ltd., a commercial-stage medical device company focused on colorectal surgery.
Colospan's flagship product, the CG-100 intraluminal bypass device, is designed to reduce complications from anastomotic leaks and minimize the need for diverting stomas, which are temporary abdominal openings used during healing. The device holds FDA Breakthrough Device Designation, is CE marked under the EU's Medical Device Regulation, and is ready for commercial launch in Europe and Israel.
Galmed plans to invest $6 million to launch the device in Europe during the second half of 2026, initially targeting Germany, Austria, and Switzerland. Colospan is also conducting a pivotal U.S. clinical trial under an Investigational Device Exemption (IDE) to support a future FDA application.
Upon closing, Colospan will become a wholly, owned subsidiary of Galmed, repositioning the company as a GI-focused medtech and biopharmaceutical platform. The transaction has been approved by both boards and is expected to close in the second quarter of 2026.
Allen Baharaff, Co-founder and Chief Executive Officer of Galmed Pharmaceuticals described the acquisition as a "defining moment" noting that combining Galmed's public company infrastructure and GI expertise with Colospan's proprietary technology could accelerate the pivotal study and regulatory pathway. He emphasized that the deal aligns with Galmed's long-term growth strategy and positions the company to reshape the standard of care in colorectal surgery.
GLMD has traded between $0.41 and $2.34 over the past year. The stock is currently trading at $0.58, down 16.05%.
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