Galmed Pharma to Acquire Colospan, Expanding GI Medtech Portfolio

Galmed Pharmaceuticals Ltd. announced that it has entered into a definitive agreement to acquire Colospan Ltd., 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.

Upon closing, Colospan will become a wholly owned subsidiary of Galmed. The acquisition is designed to accelerate Galmed's strategy to create a diversified, GI-focused medtech and biopharmaceutical platform, combining Galmed's established public company infrastructure, cash reserves, and GI clinical expertise with Colospan's proprietary device technology and active U.S. pivotal clinical program.

"CG-100 is a category leader having an FDA Breakthrough Device Designation and a CE (MDR) European regulatory status ready for commercialization. The expected acquisition of Colospan is a defining moment for Galmed and we believe is the type of asset that moves the needle," said Allen Baharaff, Co-founder and Chief Executive Officer of Galmed Pharmaceuticals. "The acquisition of Colospan aligns perfectly with our long-term growth strategy. We are bringing more than 25 years of clinical execution capabilities together with our public company experience and resources to accelerate the CG-100 pivotal study to obtain FDA regulatory approval. We believe our shared vision will allow us to scale Colospan's technologies faster, and substantially accelerate our path to success." 

Boaz Assaf, Founder and Chief Executive Officer of Colospan commented: "Colorectal cancer is the third most commonly diagnosed cancer in both men and women with ~ 1.9M diagnosed cases worldwide annually. Colorectal resection is the most common medical treatment for colorectal cancer and is performed on majority of patients worldwide to remove the tumor. Anastomotic leaks, a failure of the surgical connection, occur in up to 21% of procedures contributing to increased morbidity, mortality, longer hospital stays, and higher healthcare costs. To prevent clinical leaks, surgeons routinely create a diverting stoma: a temporary abdominal opening that redirects waste to an external bag while the anastomosis heals. While clinically standard, living with a stoma significantly impairs quality of life and creates substantial clinical and economic burden for healthcare systems. Colospan was founded specifically to answer the clinical and economic burden associated with this problem, creating a stoma-free future for patients."