Kodak’s share price surged by 1200% in 2 days

Andrew Cummings
July 31, 2020

The act was used earlier to hasten the production of masks, ventilators, and other medical equipment amid the coronavirus pandemic.

Since George Eastman put the first simple camera into the hands of consumers in 1888, Rochester, New York-based Kodak has become a globally recognized American brand that has helped lead the innovation of the graphic communications industry.

This isn't Kodak's first foray into the drug business. Back in 1988, Kodak acquired a drug company called Sterling Drug, but it didn't go anywhere and Kodak eventually sold it in 1994.

Once operational, Kodak's new arm, Kodak Pharmaceuticals, is expected to manufacture vital pharmaceutical components, which are essential to use but have a national shortage, as the U.S. FDA (Food and Drug Administration) states. These include those needed to fight against coronavirus like the anti-malarial drug, hydroxychloroquine.

CEO of Kodak Jim Continenza said it would make "up to 25 percent of active pharmaceutical ingredients used in non-biologic, non-antibacterial, generic pharmaceuticals", and that the field will make-up 30 to 40 percent of its business.

In a new deal announced Tuesday by White House trade adviser Peter Navarro, Kodak will help bring medical manufacturing back to the USA from overseas. Navarro also said that "Americans are dangerously dependent on foreign supply" for essential drugs and pharmaceutical resources.

The company's shares soared by nearly 600% in trading on Wednesday and trading was halted ten times Wednesday morning due to the stock's volatility. News broke that Kodak had secured at $765 million loan from the USA government to shift its attention to producing ingredients for generic drugs.

Bloomberg reported that the company shares closed the July 28 trading with 203% gains with its price rose to its highest after two and a half years. The LOI that will be signed today indicates Kodak's successful completion of DFC's initial screening and will be followed by standard due diligence conducted by the agency before financing is formally committed.

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