Eastman Kodak on Tuesday announced President Donald Trump working with a pioneer of photography to produce content in generic drugs in response to the coronavirus epidemic.
Kodak’s shares rose more than 60% in extended trading. Stocks more than tripled during regular trading for its best day on Tuesday, after the US government loaned the company $ 765 million to begin production of drug paraphernalia under the Defense Production Act.
“Our 33rd use of the Defense Production Act will mobilize Kodak to make generic, active pharmaceutical ingredients,” Trump said at a news conference Tuesday evening. “We will bring back our jobs and we will make America the world’s leading medical manufacturer and supplier.”
Kodak said that on Tuesday it would produce components of the drug that have been identified as essential but have been turned into chronic national shortages, as defined by the Food and Drug Administration.
The surge in stock price pushed Kodak’s market value to around $ 347 million on Tuesday. Its market value was about $ 115 million before Tuesday’s trading.
The company said it would expand existing facilities in Rochester, New York and St. Paul, Minnesota, under a new Kodak Pharmaceuticals branch.
“Kodak is proud to be a part of strengthening America’s self-reliance in the production of key pharmaceutical ingredients needed to keep its citizens safe,” Jim Kontinja, Kodak’s executive chairman, said in a statement. “By leveraging our vast infrastructure, deep expertise in manufacturing chemicals and a legacy of innovation and quality, Kodak will play a key role in the return of a reliable US pharmaceutical supply chain.”
Kodak filed for bankruptcy in 2012 after the shift of digital cameras devastated the business. The move to drug production provides an opportunity to fight for the onetime leader in film and photography.
Subscribe to CNBC PRO For exclusive insights and analysis, and live business day programming from around the world.