Rafa Laboratories Workers Declare Labor Dispute Less Than a Month After IPO

Less than a month after completing its initial public offering (IPO) on the Tel Aviv Stock Exchange, employees of Rafa Laboratories, a pharmaceutical company, have declared a labor dispute. The workers claim they have not received compensation related to the IPO, which valued the company at approximately 1.55 billion shekels. According to a report to the stock exchange, Rafa employees have begun "organizational measures" that include disrupting operations at the company's Jerusalem factory. The company is currently assessing the legality, scope, and implications of these actions and determining how to respond.

Rafa Laboratories, founded in 1937 and employing around 260 workers at its Har Hotzvim plant in Jerusalem, develops, manufactures, and markets over 100 pharmaceutical products, including both original and generic drugs. Its portfolio includes treatments such as Hedrin for lice, Bondormin for sleep disorders, Stopit for diarrhea symptoms, Even for anxiety relief, and Davio for Rett syndrome. The company also operates in the bio-defense sector, producing emergency auto-injectors for chemical warfare defense and trauma treatment, supported by up to $186 million in funding from the U.S. Department of Health for a severe bleeding treatment injector.

In 2025, Rafa reported revenues of 418 million shekels, consistent with the previous year, with 63% from pharmaceuticals and 37% from bio-defense. Net profit was about 100 million shekels, similar to 2024. The IPO involved the sale of shares worth around 500 million shekels by controlling shareholder FIMI Opportunity Funds, managed by Ishay Davidi, along with sales by the founder's heirs and the company chairman, Uri Yehudai. Rafa's management emphasized that employees are a critical resource and stated they are conducting ongoing direct talks with employee representatives rather than managing labor relations through the media.