(Bloomberg) – Eastman Kodak Co. shares more than tripled on Tuesday, thanks to its plans to secure a $ 765 million government loan to help it produce ingredients used in key generic drugs to fight the coronavirus.
The development bank loan is the first of its kind under the Defense Production Act in collaboration with the United States Department of Defense. Its goal is to accelerate the production of drugs in short supply and those considered critical to treat covid-19, including hydroxychloroquine, the controversial antimalarial drug promoted by US President Donald Trump.
The money could provide a lifeline to Kodak, the famous photography giant whose business and actions were devastated by the move to filmless cameras. Although she was once an icon of the American industry with a market capitalization of more than $ 30 billion, the company filed for bankruptcy in 2012, prompting her to a series of reinvention attempts, including forays into printers, movies. for cinema and, briefly, cryptocurrencies.
Now the 132-year-old company will reorient part of its factory structure to produce drug ingredients, including at sites in Rochester, New York and St. Paul, Minnesota, under the new arm, Kodak Pharmaceuticals.
Kodak shares rose as much as 350% to $ 11.80 each at 12:30 pm in New York. The stock has not traded above $ 5 in over two years.
“Americans are dangerously dependent on foreign supply chains for their essential drugs,” White House adviser Peter Navarro said in a statement. The United States manufactures about 10% of the components destined for the national supply of generic drugs.
Hydroxychloroquine ingredients are among the targets, according to a Dow Jones report. Antimalarial medicine has been touted by President Trump as a treatment for the virus responsible for the pandemic, although scientists such as national virus expert Anthony Fauci have said it is not effective against covid-19.
Kodak ended the first quarter with a cash balance of $ 209 million.
Nota Original:Kodak Triples on Loan to Make Covid-19 Drug Ingredients (2)
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