Galmed Pharmaceuticals Ltd. Announces Restructured Acquisition Terms for Colospan Ltd.

Galmed Pharmaceuticals Ltd. (NASDAQ: GLMD) has successfully restructured the acquisition terms for Colospan Ltd., a commercial-stage medical device company, making it a wholly owned subsidiary. The deal, which was finalized on June 22, 2026, involves an undisclosed amount, with a significant shift in financial terms aimed at protecting shareholder value. Instead of issuing $2.0 million in ordinary shares, Galmed has opted for an increased cash payment of $800,000, alongside a performance-based earnout structure tied to net sales revenues.

Colospan's flagship product, CG-100, is an innovative intraluminal bypass device designed to address one of the most critical challenges in colorectal surgery: anastomotic leak complications. The device has been CE marked under the EU Medical Device Regulation and is AMAR approved in Israel, enabling Galmed to expedite its commercialization efforts in Europe and Israel. By acquiring Colospan, Galmed gains access to a product that is not only commercially ready but also has the potential to generate revenue more rapidly than conventional drug development pipelines.

The restructured financial terms reflect a strategic approach to minimize dilution for Galmed's existing shareholders. The earnout structure includes performance tiers, with payouts starting at 7% for net sales revenues exceeding $5.0 million and escalating to 9% for revenues above $12.0 million. This risk-mitigated structure is designed to align the interests of both parties while ensuring that Galmed can maintain its financial stability as it prepares for the anticipated launch of CG-100 across Europe.

The market dynamics within the biopharmaceutical sector, particularly in gastrointestinal (GI) innovation, underscore the strategic rationale behind this acquisition. Galmed is positioning itself as a leader in the GI space by combining its drug development capabilities with Colospan's medical device expertise. The company aims to leverage the clinical success of CG-100, which has demonstrated strong safety and efficacy data in clinical trials, to reshape the standard of care for colorectal surgery patients.

Looking ahead, the acquisition of Colospan is expected to enhance Galmed's portfolio and strengthen its market presence in the biopharmaceutical sector. With plans for a pan-European launch of CG-100 and the ongoing development of its lead drug candidate, Aramchol, Galmed is well-positioned to capitalize on the growing demand for innovative solutions in GI health. The successful integration of Colospan's technology into Galmed's operations may serve as a catalyst for future growth, potentially influencing the broader market landscape for medical devices and biopharmaceuticals.