Rafa signs $82.5 million U.S. defense agreement for emergency drug injectors
The Israeli pharmaceutical company will supply the U.S. Defense Logistics Agency over five years, with potential purchases rising to $257 million.
A major deal for pharmaceutical company Rafa, controlled by private equity firm FIMI. The company reported on Thursday that it has signed a framework agreement with the U.S. Defense Logistics Agency, which operates under the U.S. Department of Defense, to supply auto-injectors containing Midazolam over five years, from 2026 through 2030.
The agreement consists of one year of performance and four option years, which Rafa considers highly likely to be exercised. If all five years are exercised, the total value of the agreement would reach $82.5 million.
The contract allows for purchases of up to $257 million, with a minimum commitment of $47.5 million. Actual purchase volumes will depend on the needs of U.S. security forces.
The auto-injectors Rafa will supply are intended for emergency treatment of civilian and military casualties exposed to chemical warfare agents.
Negotiations over the agreement were protracted and took place alongside talks surrounding the entry of institutional investors into Rafa. The signing had been delayed for a considerable period.
Rafa went public in July at a valuation of NIS 1.65 billion, after accepting a lower valuation than it had initially sought. The company had originally targeted a valuation of NIS 2 billion. As part of the IPO, FIMI sold shares worth NIS 518 million, while the heirs of company founder Boris Levin sold an additional NIS 68 million worth of shares.
