Shares of Galmed Pharmaceuticals Ltd. (NASDAQ: GLMD) surged significantly today following a key development announcement. As of the most recent check, GLMD stock was trading at $2.44, reflecting a sharp increase of 55.41%.
Strategic Partnership to Advance Drug Delivery Innovation
Galmed Pharmaceuticals disclosed that it has signed a binding term sheet with Entomus s.r.o. to license and commercialize a proprietary Self-Emulsifying Drug Delivery System (SEDDS). This novel technology facilitates the sublingual absorption of peptide-based therapies, notably GLP-1 analogs. A definitive agreement, outlining milestone and royalty payments, is expected to be executed within 90 days.
Drug effectiveness is frequently reduced by current issues with oral drugs, especially the first-pass hepatic metabolism. In the meanwhile, despite their effectiveness, injectable medications cause discomfort and make it difficult to comply. By avoiding the gastrointestinal tract and allowing direct absorption into the circulation through the mouth mucosa, sublingual administration presents a possible substitute.
Growing Market Demand for GLP-1 Therapeutics
GLP-1 receptor agonists, including semaglutide, are increasingly being used in the domains of cancer, cardiovascular disease, and metabolism. Jefferies projects that the worldwide GLP-1 market would reach $120 billion by 2030, mostly due to an increase in type 2 diabetic mellitus (T2DM) and obesity patients. Notably, by 2032, peak sales outside of the US are expected to reach about $20 billion.
Patents in other significant locations, including as India, Brazil, the GCC countries, Singapore, and South Africa, are scheduled to expire as early as 2026, even if semaglutide maintains intellectual property protection in vital markets like the U.S., Europe, and Japan through 2028–2031. These areas provide substantial economic potential for novel GLP-1 treatments due to the rise in T2DM and obesity prevalence.
Opening Up New Prospects with an Innovative Semaglutide Formulation
Galmed hopes to use SEDDS technology to create and market a sublingual version of semaglutide through this arrangement. In comparison to oral semaglutide (Rybelsus), this method may improve bioavailability and allow for dosage reductions while providing a non-invasive, patient-friendly method of administration.
Galmed (GLMD) also plans to expedite development by seeking faster regulatory paths, such as the 505(b)(2) approach. A major unmet need in the field of GLP-1 treatment may be filled by the novel delivery strategy, which may offer better glycemic control, less side effects, and enhanced pharmacokinetic consistency.
