Kodak Soars By 400% After Trump Bump

Marco Green
July 31, 2020

"Kodak's stock rallied more than 200% on Tuesday after the news was announced by the Trump administration".

A $765 million federal loan through the U.S. International Development Finance Corporation (DFC) will be given to Eastman Kodak to produce pharmaceuticals in Rochester. Was one of the great brands of the world.

Kodak CEO Jim Continenza could net more than $135 million from the camera company's 1,200% stock surge in two days this week. Disposable cameras weren't enough-so why not a completely different raison d'etre.

Shares of Eastman Kodak, an American technology company, have recently increased, following the announcement of a deal by the U.S. President Donald Trump.

"Shortages of face masks and other protective equipment for doctors and nurses have raised concerns in recent months about USA reliance on China and India for pharmaceutical ingredients and finished medicines". 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. A recent study warned that the shortages could be worsened.

Through the significant loan, the DFC is looking forward to helping Kodak efficiently manage start-up costs the company requires for repurposing, as well as expanding its existing facilities in Rochester, Minnesota, and NY. The loan will allow it to launch Kodak Pharmaceuticals, a new arm of the company that will produce critical pharmaceutical components. Then, the company vows to produce up to 25% of active "ingredients used in non-biologic, non-antibacterial, generic pharmaceuticals" once it becomes fully operational.

Notably, this is not the first time Kodak has ventured into the pharma business.

The U.S. administration's deal with Kodak is the first of this magnitude using the powers of the 1950 Defense Production Act.

However, it has awarded $354 million to Phlow Corp in May to start producing active pharmaceutical ingredients, among other chemical ingredients, used in certain essential medications.

Other reports by Click Lancashire

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