RAMAT GAN, Israel – June 8, 2026
Galmed Pharmaceuticals has entered into a definitive agreement to acquire Colospan Ltd., a commercial-stage medical device company developing innovative solutions for colorectal surgery, in a strategic transaction designed to create a diversified gastrointestinal-focused platform spanning both medical technology and biopharmaceutical innovation. Upon completion of the acquisition, Colospan will become a wholly owned subsidiary of Galmed, significantly expanding the company’s footprint in the gastrointestinal healthcare market. The transaction brings into Galmed’s portfolio the CG-100 Intraluminal Bypass Device, an FDA Breakthrough Device-designated technology currently being evaluated in an active U.S. pivotal Investigational Device Exemption (IDE) trial. The acquisition positions Galmed to address one of the most significant unmet needs in colorectal surgery while targeting a market opportunity estimated at approximately $6 billion globally. The deal has been unanimously approved by the boards of both companies and is expected to close during the second quarter of 2026, subject to customary closing conditions.
CG-100 Technology Aims to Transform Colorectal Surgery
At the center of the acquisition is Colospan’s CG-100 Intraluminal Bypass Device, a minimally invasive technology developed to address complications associated with colorectal surgery, particularly anastomotic leaks and the need for diverting stomas. Anastomotic leaks remain one of the most serious complications following colorectal resection procedures and can result in increased morbidity, mortality, prolonged hospitalization, and substantial healthcare costs. To reduce these risks, surgeons often create temporary diverting stomas, requiring patients to live with external waste collection systems during recovery. While clinically effective, stomas significantly affect quality of life and place additional burdens on healthcare systems.
The CG-100 device is designed to protect the surgical connection while potentially reducing the need for diverting stomas, creating a less invasive treatment pathway for patients undergoing colorectal surgery. The technology has already received CE Mark certification under the European Union Medical Device Regulation (MDR) and is positioned for commercial launch in Europe and Israel during the second half of 2026. Galmed plans to invest approximately $6 million to support commercialization efforts, initially targeting Germany, Austria, and Switzerland.
FDA Breakthrough Device Status Supports Regulatory Momentum
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The strategic value of the acquisition is further enhanced by the regulatory progress already achieved by the CG-100 platform. The device has received FDA Breakthrough Device Designation, recognizing its potential to provide more effective treatment for serious medical conditions where limited alternatives exist. In addition, Colospan is actively conducting a U.S. pivotal clinical trial under an FDA-approved IDE, which is intended to support a future regulatory submission in the United States. Galmed believes that combining its clinical development expertise, financial resources, and public company infrastructure with Colospan’s technology platform will accelerate completion of the pivotal study and support future FDA approval efforts.
The transaction therefore provides Galmed with a near-commercial-stage medical technology asset alongside a robust clinical development program capable of generating long-term growth opportunities in the gastrointestinal sector.
Building a Diversified GI-Focused Healthcare Platform
The acquisition represents a significant strategic transformation for Galmed as it evolves beyond its traditional biopharmaceutical focus. By integrating Colospan’s advanced medical device technology with its existing gastrointestinal research capabilities, the company aims to establish a comprehensive platform addressing major unmet needs across digestive health and gastrointestinal disease management. Company leadership believes the combination creates opportunities to leverage clinical expertise, commercialization capabilities, and innovation across multiple therapeutic and surgical applications. As demand grows for technologies that improve surgical outcomes, reduce healthcare costs, and enhance patient quality of life, the CG-100 platform could play an important role in reshaping the standard of care for colorectal surgery. The transaction highlights the increasing convergence of medical technology and biopharmaceutical innovation as companies seek integrated solutions capable of delivering both clinical and economic value across healthcare systems worldwide.
Source: Galmed Pharmaceuticals, Colospan press release
