At the direction of President Donald J. Trump, U.S. International Development Finance Corporation (DFC) Chief Executive Officer Adam Boehler will today sign a letter of interest to provide a $765 million loan to Eastman Kodak Company (Kodak) to support the launch of Kodak Pharmaceuticals, a new arm of the company that will produce critical pharmaceutical components. Kodak Pharmaceuticals will produce critical pharmaceutical components that have been identified as essential but have lapsed into chronic national shortage.
The enormous rally in Kodak (KODK) shares has no end in sight, after the Trump administration announced the company will be transformed into a pharmaceutical producer under the Defense Production Act. On Tuesday, President Donald Trump announced the company would receive a loan to launch Kodak Pharmaceuticals, which will produce generic active pharmaceutical ingredients to reduce America's dependency on foreign drug-makers, CNN reported.
Shares of Kodak last traded up about 330% to about $26 a share after skyrocketing as much as 570%. Trading was halted more than 10 times in morning trading on Wednesday due to volatility. Just on Tuesday, the stock jumped 203% for its best day ever after the U.S. government awarded the company a $765 million loan. The surge in stock price pushed Kodak’s market value to $347 million as of Tuesday’s close. Before Tuesday’s trading it had a market value of about $115 million, according to CNBC.
“Kodak is proud to be a part of strengthening America’s self-sufficiency in producing the key pharmaceutical ingredients we need to keep our citizens safe,” said Kodak Executive Chairman Jim Continenza. “By leveraging our vast infrastructure, deep expertise in chemicals manufacturing, and heritage of innovation and quality, Kodak will play a critical role in the return of a reliable American pharmaceutical supply chain.”
Kodak Pharmaceuticals will produce critical pharmaceutical components that have been identified as essential but have lapsed into chronic national shortage, as defined by the Food and Drug Administration (FDA). Although Americans consume approximately 40 percent of the world’s supply of bulk components used to produce generic pharmaceutics, only 10 percent of these materials are manufactured in the United States.
Once fully operational, Kodak Pharmaceuticals will have the capacity to produce up to 25 percent of active pharmaceutical ingredients used in non-biologic, non-antibacterial, generic pharmaceuticals while supporting 360 direct jobs and an additional 1,200 indirectly. The company plans to coordinate closely with the Administration and pharmaceutical manufacturers to identify and prioritize components that are most critical to the American people and U.S. national security.
"Kodak is proud to be a part in strengthening America’s self-sufficiency in producing the key pharmaceuticals we need to keep our citizens safe. More to come at the signing ceremony," Kodak tweeted on Twitter.
Since George Eastman put the first simple camera into the hands of consumers in 1888, Rochester, New York-based Kodak has become a globally recognized American brand that has helped lead the innovation of the graphic communications industry. Today, Kodak is expanding its traditional product line to support the national response to COVID-19 by bolstering domestic production and supply chains of key strategic resources.