Galmed Pharmaceuticals Ltd. (NASDAQ: GLMD), an Israeli pharmaceutical company, announced on Monday that it has entered into a definitive agreement to acquire Colospan Ltd., an Israeli commercial-stage medical device company that is claimed to have 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 intended 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 US pivotal clinical program.

Colospan's flagship product, the CG-100 intraluminal bypass device, is a minimally invasive alternative designed to protect the anastomosis, minimise patient burden, and reduce the need for a diverting stoma - a temporary abdominal opening that redirects waste to an external bag while healing occurs. The CG-100 is CE marked under the MDR and is currently under investigational use only (under IDE) in the USA. Colospan is currently conducting a clinical pivotal trial designed to support a future FDA application. By combining resources, Galmed plans to deliver a clinically compelling and economically meaningful tool to reshape the standard of care for colorectal resection patients.

Under the terms of the definitive agreement, Colospan shareholders and SAFE holders will receive USD2.5m in cash and USD2.0m in Galmed ordinary shares at closing, subject to customary adjustments and escrow. The transaction, unanimously approved by the boards of directors of both companies, is subject to customary closing conditions and is expected to close in Q2 2026.