BiomX Inc. (PHGE) and its subsidiary Zorronet have entered into a 12‑month framework agreement with Israel Railways to deploy an AI‑powered animal‑deterrent system at 15 stations. The system, which has a 120‑meter detection range, will be installed, maintained, and supported by a 24/7 service center. The agreement follows a pilot that ran over the past year, achieved a 98% success rate in keeping large animals off tracks, and cost Israel Railways approximately NIS 800,000 (about $266,000).
The deal marks a milestone for BiomX’s defense and security portfolio, signaling a strategic pivot away from its phage‑therapy roots. By securing a recurring revenue stream in a critical national‑infrastructure market, the company validates the commercial viability of its AI platform and expands its presence in a sector with high reliability requirements. Israel Railways operates roughly 1,700 km of track, underscoring the scale of the opportunity.
"The results of the pilot demonstrated that our platform can perform reliably in real‑world conditions, where accuracy and response time directly affect train operations," said Idan Wasserman, CEO of Zorronet. "This system not only helps prevent harm to animals, but also prevents damage worth millions of dollars to railway infrastructure and operations." Michael Oster, CEO of BiomX, added, "The Israel Railways agreement marks a significant step toward broader infrastructure deployments, positioning Zorronet as a trusted provider to Israel's critical national infrastructure sector." He further noted, "The results achieved with Israel Railways, and the move toward broader implementation, reflect a platform with real‑world relevance across infrastructure, security, and defense‑related use cases. This agreement with Israel Railways is a strong validation of Zorronet's deployed AI capabilities and its growing position as a trusted technology provider to Israel's critical national infrastructure."
BiomX has been operating at net losses, with Q1 2025 losses of $7.66 million and Q2 2025 losses of $6.0 million, compared to a $17.33 million loss in Q1 2024 and a $4.5 million income in Q2 2024. The new agreement diversifies the company’s revenue base and provides a predictable, recurring income stream that can help offset the ongoing R&D costs associated with its phage‑therapy pipeline.
The framework agreement demonstrates the practical value of BiomX’s AI platform in a high‑stakes environment, where preventing animal incursions can avert damage worth millions of dollars and avoid operational disruptions. By securing a long‑term contract with a national operator, BiomX positions itself for future deployments across additional stations and potentially other infrastructure customers, reinforcing its strategic shift toward defense and security technology distribution.
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