Kodak Moment: Photography Pioneer Gets $765 Million to Produce Ingredients for Drugs

By Kurt Stolz on 30 July 2020
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The original Kodak camera, 1888.

Photography pioneer Eastman Kodak will receive a $765 million loan from the U.S. government to manufacture basic ingredients used in pharmaceuticals.

The loan comes from the U.S. International Development Finance Corporation, a new foreign investment agency that is working with the Department of Defense to find ways to rebuild the nation’s stockpile of medical supplies that has recently been depleted by the ongoing coronavirus pandemic. The goal is to use manufacturing plants in the United States to reduce reliance on foreign plants.

Kodak will produce pharmaceutical components that have been identified as essential but have since lapsed into chronic national shortage, as defined by the U.S. Food and Drug Administration.

The company’s shares soared by almost 600%  in trading on Wednesday and trading was halted ten times Wednesday morning due to the stock’s volatility.

“It’s unacceptable going forward that American pharmaceuticals – the generic form of pharmaceuticals – are made in China and outside of the United States,” said the head of the agency, Adam Boehler, on a call with reporters. The plan calls for Kodak to eventually be able to produce 25% of the active pharmaceutical ingredients needed in the United States.

“Our 33rd use of the Defense Production Act will mobilize Kodak to make generic, active pharmaceutical ingredients,” said President Trump, adding that the move will bring back jobs to the country

(Photo: Accura Media Group)

Accura News

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