Eastman Kodak, the legendary company is known for being one of the most influential camera companies. Although a lot of people know them during their film days, they also pioneered the digital camera. However sadly they didn’t follow through with the last bit and their relevance has faded in the last decade and a half.
However, they are back with a bang and it is not about cameras. According to the Wall Street Journal, Kodak secured a $765 million loan that will aide it in the domestic production of generic drugs.
Apparently the move is expected to create at least 350 new jobs thanks to the new business unit for the company. At peak production in the next four to five years, it could produce 25% of the active ingredients for “non-biologic, non-antibacterial generic pharmaceuticals.”
The loan to Kodak is the first of its kind under the US Defense Production Act. This will enable Kodak to produce ingredients for drugs like hydroxychloroquine which Trump supported in treatment for COVID-19, as per the Wall Street Journal.
Jim Contineza, Kodak’s Chairman and CEO expects the pharmaceutical ingredients to make up 30% to 40% of Kodak’s business over time, which is quite substantial.
Kodak’s drug operation will be build on their existing Specialty Chemicals Group which they use for pharmaceuticals, industrial specialties, personal care, electronics, agrochemicals, graphics security and emerging energy technologies.
This is one of the more surprising news that we have seen evolve this year thanks to the COVID-19 pandemic. The pandemic has led to the focus on providing the much needed pharmaceutical drugs and it seems Kodak wants to hit big. This news was so good to Kodak, their shares soared 200% yesterday so it seems investors are betting that Kodak might benefit greatly from this.
