Shares of Eastman Kodak, an American technology company, have recently increased, following the announcement of a deal by the U.S. President Donald Trump. The agreement is regarding the President’s collaboration with the company to produce active ingredients for generic medicines to fight against the deadly COVID-19 disease.
In the extended trading, the shares of Kodak have soared by more than 318%, to nearly $25.26 per share. The U.S. government has offered a $765 million loan to the company to commence the production of ingredients for the generic drugs, under the Defense Production Act.
The U.S. president has reportedly stated that the country’s 33rd adoption of the Defense Production Act will mobilize Kodak in manufacturing active pharmaceutical ingredients. This will also aid America in becoming the premier medical supplier and manufacturer.
The photography company has cited that it will provide essential pharmaceutical components to meet the chronic shortages in the nation, as defined by the U.S. FDA. The recent 1,300% increase in the stock price has recently enabled it to record a market capitalization of over $1.5 billion. Prior to this, the company registered a value of nearly $115 million.
To ensure rapid production, Kodak will expand its existing facilities in St. Paul, Minnesota, New York, and Rochester, under a new arm of Kodak Pharmaceuticals.
As per the statement made by Jim Continenza, Executive Chairman of Kodak, the company is excited to play a key role in strengthening the country’s self-sufficiency by offering major ingredients in the U.S. It will leverage its heritage in quality and innovation, deep expertise in chemicals production, and vast infrastructure to advance America as a reliable pharmaceutical supply chain.
In 2012, the company had filed for bankruptcy due to the shifting consumer preferences to digital cameras. The recent deal to enter the drug production business will present a significant growth opportunity for the company.
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https://www.cnbc.com/2020/07/28/kodak-soars-another-40percent-after-trump-announces-deal-to-manufacture-generic-drug-ingredients.html