- Kodak’s shares rose sharply by as much as 1,000 percent two days after the camera company won a government loan of $ 765 million to produce drug ingredients in response to a pandemic.
- The group plans to launch a pharmaceutical division that will make important drug ingredients currently in “chronic national scarcity.”;
- President Trump called the agreement “one of the most important deals in the history of the US pharmaceutical industry” at a press briefing on Tuesday.
- Kodak stock price tripled on Tuesday, then rose as much as 287% on Wednesday.
- You can find more stories on the Business Insider homepage.
Kodak shares rose sharply by as much as 1,000 percent two days after the camera company secured a government loan of $ 765 million to produce generic drugs in response to the coronavirus pandemic.
Shares of Kodak more than tripled on Tuesday, then jumped as much as 287% to a six-year high on Wednesday. At one point, the group’s market capitalization increased more than 11-fold to approximately $ 1.4 billion.
President Trump called the Kodak Agreement “one of the most important deals in the history of the US pharmaceutical industry” at a press briefing on Tuesday.
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The U.S. International Development Finance Corporation will provide Kodak with cash under the Defense Manufacturing Act, which requires companies to accept and prioritize government contracts for national security and other reasons.
Kodak plans to use the loan to launch a division of Kodak Pharmaceuticals. The unit will create essential drug components that are in a “chronic national deficiency” as defined in the Food and Drug Administration.
Pharmaceutical ingredients could eventually make up 30 to 40% of Kodak’s business, CEO Jim Continenza told The Wall Street Journal.
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Kodak dominated the photographic film market and in 1997 boasted a market cap of nearly $ 30 billion.
In 2012, however, he filed for bankruptcy after the digital camera ceased to be obsolete with its products – but according to the New York Times, he invented the digital camera.
Kodak’s revenue fell 6% to $ 1.2 billion in 2019, bringing its pre-tax loss to $ 60 million.