Teva to Supply Emergency Auto-Injectors to US Defense Department

Israeli pharmaceutical company Teva has secured a significant five-year framework agreement with the U.S. Defense Logistics Agency, an entity operating under the American Department of Defense. The deal, valued at up to $82.5 million, involves the supply of specialized auto-injectors designed for emergency use. These injectors are intended for treating civilian and military casualties exposed to chemical warfare agents.

The agreement spans from 2026 to 2030, with an initial one-year execution period and four additional one-year option years, which Teva expects to be exercised. The total potential value could reach $257 million, with a minimum purchase commitment of $47.5 million. Actual purchase volumes will depend on the U.S. military's needs.

Negotiations for this contract were lengthy and were intertwined with Teva's efforts to attract institutional investors. The finalization of the deal was delayed for a considerable period. Teva went public in July at a valuation of approximately 1.65 billion shekels, after initially aiming for a higher valuation of 2 billion shekels.

During the IPO, FIMI, the controlling fund, sold shares worth 518 million shekels, and the heirs of founder Boris Levin sold an additional 68 million shekels worth of stock. Teva's market capitalization closed at 1.67 billion shekels on the day prior to this report. Meanwhile, the company's employees have been staging protests for several weeks, demanding a bonus following the IPO.