Colospan Ltd. ("Colospan") provides Galmed Pharmaceuticals Ltd. ("Galmed") (NASDAQ:GLMD) with a commercially ready product in the EU/Israel (CE marked under MDR) with a dedicated OPS code to accelerate reimbursement in Germany
Strategic and Financial Highlights
Restructured Anti-Dilutive Financial Terms: To diminish the dilutive event on GLMD's existing shareholders, Galmed and Colospan agreed that in lieu of issuing $2.0 million in Galmed ordinary shares at closing, the cash payment shall be increased by $800K. The remaining balance has been structured as a transparent, risk-mitigated earnout capped at $2.0 million, commencing in Q3 2027. This single-digit percentage earnout on net sales revenues is tied to clear performance tiers: a 7% payout on net sales revenue over $5.0 million (Tier 1), escalating to 9% for net sales revenue over $12.0 million (Tier 2). In addition, the parties agreed to an acceleration of the earnout upon the earlier of a strategic transaction involving substantially all of the acquired business or related intellectual property of Colospan, or Galmed raising at least $17.5 million in aggregate gross proceeds through equity financings.
Galmed is laying the groundwork for a pan-European launch of CG-100, a less invasive intraluminal bypass device designed to protect colorectal anastomoses and reduce the need for diverting stomas.
CG-100 benefits from strong safety and efficacy clinical data based on 4 clinical trials conducted in Europe between 2014 and 2024.
In addition to generating top-line revenue already in 2026, "real-life" data from patients using CG-100 is planned to be submitted to the FDA to support Colospan' s Pivotal study
Strategic Synergy: Establishing a unified GI platform by leveraging drug development expertise with medical device commercialization.
RAMAT GAN, Israel, June 22, 2026 /PRNewswire/ -- Galmed today announces that following a restructuring of the acquisition terms, it consummated the acquisition of Colospan a commercial-stage medical device company that has developed a clinically differentiated solution to one of colorectal surgery's most pressing problems: anastomotic leak complications and the diverting stomas used to manage them.
As a result of the acquisition, Colospan became a wholly owned subsidiary of Galmed. The acquisition of Colospan gives Galmed a commercial-ready product in the EU/Israel (CE marked under MDR and AMAR approved in Israel) with a dedicated OPS code (5-46b.2) in Germany, potentially allowing Galmed to potentially generate top-line revenue faster than traditional drug pipelines.
To date, 97 patients have been treated with the CG-100 worldwide across four clinical trials in Europe, and Israel, (not including the US pivotal trial which is ongoing). Results of these trials demonstrated that 90% of patients treated with the CG-100 avoided stoma creation. No device migration was observed in any patient, and 100% patient tolerability was achieved. Safety data for CG-100 showed 0% mortality (compared to 1.3% in patients with Stoma), 3% anastomotic leak rate (compared to 6.3% in patients with stoma), and 3% device-related adverse events graded Clavien-Dindo 3–5 (compared to 22.1% in patients with stoma). None of the Colospan's patients necessitated a permanent stoma as opposed to 23.5% in the patients with a temporary stoma.
Strategic Synergy
"By combining resources, Galmed plans to deliver a clinically compelling and economically meaningful tool to reshape the standard of care for colorectal resection patients worldwide," said Allen Baharaff, Co-founder and Chief Executive Officer of Galmed. "The acquisition of Colospan aligns with our long-term strategic focus which remains the GI space. We strongly believe that CG-100 together with the advancement of our Ph 3 ready lead drug candidate, Aramchol, for GI related oncology indications will establish Galmed as a specialty GI medtech and biopharmaceutical platform."
Mr. Baharaff continued: "While the original terms of the acquisition contained an immediate dilutive payment in ordinary shares of $2.0 million, in order to prevent the immediate dilutive impact on Galmed shareholders, we worked together with Colospan's Board and lead investors to reach a preferred agreement: an additional cash payment of $800K (made possible by our solid cash balance of $15.6 million as of March 31, 2026) and a transparent, risk-mitigated earnout of $2.0 million on net sales, commencing in Q3 2027."