Eastman Kodak soars 300% after Trump administration grants $765M loan

The U.S. International Development Finance Corporation said it will sign a letter of interest to provide a $765M loan to Eastman Kodak (KODK) to support the launch of Kodak Pharmaceuticals, a new arm of the company that will produce pharmaceutical components. “The project would mark the first use of new authority delegated by President Trump’s recent executive order that enables DFC and the U.S. Department of Defense to collaborate in support of the domestic response to COVID-19 under the Defense Production Act,” the agency said in a statement. “Kodak is proud to be a part of strengthening America’s self-sufficiency in producing the key pharmaceutical ingredients we need to keep our citizens safe,” said Kodak Executive Chairman Jim Continenza. “By leveraging our vast infrastructure, deep expertise in chemicals manufacturing, and heritage of innovation and quality, Kodak will play a critical role in the return of a reliable American pharmaceutical supply chain.” Kodak Pharmaceuticals will produce “critical pharmaceutical components that have been identified as essential but have lapsed into chronic national shortage,” the statement reads. DFC said its loan will accelerate Kodak’s time to market by supporting startup costs needed to repurpose and expand the company’s existing facilities in Rochester, New York and St. Paul, Minnesota. Once fully operational, Kodak Pharmaceuticals will have the capacity to produce up to 25% of active pharmaceutical ingredients used in non-biologic, non-antibacterial, generic pharmaceuticals while supporting 360 direct jobs and an additional 1,200 indirectly, the statement adds. Shares of Eastman Kodak are up 323%, or $8.46, to $11.08 in early trading.