Galmed Pharmaceuticals Ltd. ("Galmed") (NASDAQ:GLMD) today announced that it has entered into a definitive agreement to acquire Colospan Ltd. ("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.

Under the terms of the definitive agreement, Colospan shareholders and SAFE holders will receive $2.5 million in cash and $2.0 million in Galmed ordinary shares at closing, subject to customary adjustments and escrow. The transaction has been unanimously approved by the boards of directors of both companies. The transaction is subject to customary closing conditions and is expected to close in Q2 2026.