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Trump announces an agreement with the Kodak company to turn it into a pharmaceutical industry

Eastman Kodak, which was once the leading photography sales company, has taken a turn to delve into the pharmaceutical industry. Under the Defense Production law, the Government of Donald Trump has granted Kodak a loan of $ 765 million to produce components of drugs classified as essential during the coronavirus pandemic. The company made the announcement last Tuesday, causing the shares to more than triple their value on the New York Stock Exchange, the best day in its history.

Aiming to help speed up national drug production and reduce the United States’ dependence on third countries like China and India, the president has announced the millionaire government loan. “We will regain jobs and make the United States the world’s leading medical manufacturer and supplier,” said the Republican at the White House. Kodak Chief Executive Jim Continenza said in a press release that they will leverage the company’s infrastructure and expertise in chemical manufacturing to play “a critical role in the return of a trusted American pharmaceutical supply chain.”

After a 90% collapse in the stock market due to the change to digital cameras, Kodak filed for bankruptcy in January 2012. In late 2013, the company formally said goodbye to its bankruptcy process with a reorganization that focused its services in high speed digital printing technologies and flexible packaging of consumer goods. With the investment of $ 765 million, Continenza said the company will expand existing facilities in Rochester, New York and St. Paul, under the new name of Kodak Pharmaceuticals, and create 360 jobs.

Trump said Kodak would not only produce ingredients for generic drugs, but also “the building blocks of many drugs, in a way that is cost competitive and environmentally safe.” The Kodak loan has similar terms to a commercial loan and must be repaid in 25 years, according to the company’s president.

The agreement is reached under the protection of the Defense Production law, invoked by the American president in mid-May. The rule allows, among other things, that the president can compel companies to accept and prioritize contracts necessary for national defense, as well as force the industry to expand the production and supply of basic resources and impose controls on wages and prices.

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