And "this isn't the first time Kodak has dipped its toes into pharmaceuticals, though it only stayed in the business for a few years the last time around".
The U.S. government plans to give the company US$765 million to jumpstart its pharmaceutical branch called Kodak Pharmaceuticals.
Under government support, the unit will have the capacity to produce up to 25 percent of the active pharmaceutical ingredients (APIs) needed to make generic drugs in the USA and reduce dependency on foreign countries for medical supplies.
The loan will lead to the creation of Kodak Pharmaceuticals, a new arm of the company that will produce critical pharmaceutical components. The company's value climbed to $1.99 billion as of 10:25 a.m.in NY, after closing on Friday shy of $100 million. Reportedly, the LOI will be signed by Boehler and Continenza, and the signing ceremony is likely to attract remarks from President Donald Trump and Andrew Cuomo, the Governor of NY. The development bank loan was the first of its kind under the Defense Production Act in collaboration with the U.S. Department of Defense, and meant to speed production of drugs in short supply and those considered critical to treat Covid-19, including hydroxychloroquine, the controversial antimalarial drug touted by President Donald Trump.
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. 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 USA national security. The surge in stock price pushed Kodak's market value to $347 million as of Tuesday's close.
The goal is to ramp up production of pharmaceuticals in the U.S.to a point where the country is able to produce 25% of the active ingredeients necessary to make its own medicines. "This is about assuring our supply chains now and in the future", said Rear Admiral John Polowczyk, White House Supply Chain Task Force Lead.
"Fujifilm is also several steps ahead of Kodak in the pharmaceutical realm".
Kodak used to be a household name back in the day. These efforts complement DFC's global response to both the health-related and economic impacts of COVID-19. Under the initiative, DFC is particularly focused on investments in health system capacity, including supply chains that expand the distribution of diagnostics, therapeutics, vaccines, and other medical supplies, products, and equipment.