President Trump offered a $ 765 million loan on Tuesday to turn former imaging giant Kodak into a pharmaceutical manufacturer.
“It’s a breakthrough in returning pharmaceutical production back to the United States,” Trump told a news conference. “Kodak will now produce generic, active pharmaceutical ingredients. That̵7;s a big deal. Thanks to advanced manufacturing techniques, Kodak will also create the basic starting materials, which are the building blocks of many drugs, in a way that is cost-competitive and environmentally safe. “
Shares of Kodak closed more than 200 percent on Tuesday.
Kodak said it would build its headquarters in Eastman Business Park in Rochester, New York, and that the loan would create at least 360 jobs and indirectly support another 1,200.
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The company was a technology giant. It employed more than 120,000 people worldwide in 1973 and invented the digital camera in 1975. Kodak has not changed the trends of photography and declared bankruptcy in 2012.
Nevertheless, Kodak CEO Jim Continenza said the move to pharmaceuticals makes sense for the company.
“Kodak is proud to be part of strengthening America’s self-sufficiency in producing the key pharmaceutical ingredients we need to keep our citizens safe,” Continenza said in a statement. “By leveraging our extensive infrastructure, in-depth chemical manufacturing expertise, and a legacy of innovation and quality, Kodak will play a critical role in returning a reliable American pharmaceutical supply chain.”
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Trump’s report says Kodak will eventually produce 25 percent of America’s “generic active pharmaceutical ingredients needed for all non-biological and antibacterial drugs.”
This is not Kodak’s first foray into the pharmaceutical industry. In 1988, the company established “a new healthcare company with the establishment of its Eastman Pharmaceuticals division.” In 1988, he bought Sterline Drug.
“Kodak has acquired Sterling Drug Inc., which has provided the infrastructure and marketing capabilities that Kodak needed to participate in the markets for ethical, prescription, and over-the-counter drugs,” the company’s website said. “Kodak finally sold its non-imaging medical companies in 1994.”
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Kodak did not respond immediately to a request for comment on Tuesday.
President Trump has appealed to the Defense Manufacturing Act 33 times, representing nearly $ 3.2 billion in partnerships. During the coronavirus pandemic, he used DPA to increase the production of medical supplies such as ventilators and masks.
“HHS, FEMA and the private sector have coordinated the delivery of more than 196,000 095 respirators, 815 million, 20 million gloves, 34 million protective shields and 354 million jackets,” Trump said on Tuesday.
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