ColoSpan and the EIC Accelerator: Avoiding the Stoma, Sold to Galmed

After rectal cancer surgery, surgeons often create a temporary stoma, diverting the bowel through the abdomen into a bag, to protect the join from leaking. ColoSpan, an Israeli company based in Kfar Saba, developed CG-100, a "temporary intraluminal bypass device" placed inside the bowel to protect the join, aiming to spare patients the stoma.

The European Innovation Council granted €2,269,312 towards a €3.24 million project, part of what the company announced as €8.2 million of EIC support in 2021. The project prepared the US pivotal trial and kept the device's EU certification. The trial is still recruiting. In June 2026 Galmed Pharmaceuticals agreed to buy ColoSpan, and under the amended terms filed with the SEC paid $3.3 million in cash plus up to $2 million in sales-based earn-outs.

Where ColoSpan Stands Today

ColoSpan is a wholly owned subsidiary of Galmed, an Israeli company filing with the US SEC that in September 2026 rebranded as a gastrointestinal platform built around it and called ColoSpan "a commercial-stage medical device company". According to the deal announcement, Galmed plans to invest $6 million in a European commercial launch in Germany, Austria and Switzerland in the second half of 2026 and to accelerate the US pivotal trial. The amended agreement replaced $2 million of Galmed shares with $800,000 more cash and added earn-outs on sales from July 2027, with no payment on the first $5 million of cumulative sales.

The Technology: A Bypass Inside the Bowel

In a 60-patient study reported in 2017, ColoSpan said the device was inserted and removed in all patients and the leak rate was 5%, against an expected 10 to 12%. A newer randomised pivotal trial on ClinicalTrials.gov started in June 2020, plans 250 patients and expects primary completion at the end of 2026.

What the EIC Project Promised, and What CORDIS Shows

The project promised a device "designed to reduce the rate of diverting stoma and its related complication by at least 70%". The CORDIS report describes evaluating 35 sites in the US and EU and initiating 15 for the pivotal trial, retaining the MDR certificate for both device sizes, and manufacturing and regulatory work. It reports no enrolment figures or results, and projects savings of more than €19,000 per patient.

1. EU certification keptDeliveredMDR certificate retained.
2. Pivotal trial sitesDelivered15 sites initiated.
3. Pivotal trial resultsPendingStill recruiting in 2026.
4. 70% fewer stomas shownNot shownNo comparative data yet.

What Has Happened Since the Award

The Money

ColoSpan announced €8.2 million of EIC support in December 2021 without splitting grant and equity; CORDIS records the grant at €2.27 million. In 2017 it had raised $7.7 million led by Triventures. The sale to Galmed values the company at $3.3 million in cash plus up to $2 million more if sales reach set levels. Whether the EIC held equity, and what it received, is not public.

Why Europe Should Care

A device that spares cancer patients a stoma would improve lives and, by the company's projection, save money. The EIC supported that goal. But the pivotal trial that would prove it has been running for six years, and in 2026 the company was sold to Galmed for $3.3 million in cash plus up to $2 million in earn-outs.

The Verdict

ColoSpan and Galmed have not been asked for comment for this article. It is based entirely on company statements, SEC filings, EU project data and the trial registry, linked throughout.