Kodak stock soared as much as 1,900% in two days after the company secured a $765 million government loan to produce generic-drug ingredients in response to the coronavirus pandemic.
President Trump also throws his support behind Kodak by calling it “one of the most important deals in the history of US pharmaceutical industries”.
The cash is provided by the US International Development Finance Corporation to Kodak under the Defense Production Act which requires companies to accept and prioritize government contracts for national security and other reasons.
The announcement created a huge boost for Kodak. Its shares tripled on Tuesday then again jumped almost 570%. The group’s market capitalization also rose more than twentyfold, to about $2.2 billion.
Kodak willuseto set up a pharmaceuticals division and make essential drug components.
Kodak’s CEO Jim Continenza told The Wall Street Journal that 30% to 40% of Kodak’s business will eventually be dedicated to manufacturing pharmaceutical ingredients.
Kodak was a household name in photographic film market during much of 20th century. Kodak also is a dominant force in graphic arts industry. Now it seems that the company has chosen a new path for the future.