Eastman Kodak shares traded more than 200% higher after the company reported it is forming a new business unit to produce essential pharmaceutical components funded by the U.S. International Development Finance Corporation.
Source: Streetwise Reports 07/28/2020
Global technology company Eastman Kodak Co. (KODK:NYSE), which is focused on print, advanced materials and chemicals, today reported that is entering into a financing agreement with the U.S. International Development Finance Corporation (DFC) in order to produce critical pharmaceutical components in the U.S.
The firm indicated that DFC’s CEO Adam Boehler intends to issue and sign a letter of interest (LOI) today to provide a loan in the amount of $765 million to Eastman Kodak to fund the launch of Kodak Pharmaceuticals signaling a new moment for the company. According to Eastman Kodak’s website, this new business unit has been established in order “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.”
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The report advised that “this 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 (DOD) to collaborate in support of the domestic response to COVID-19 under the Defense Production Act (DPA).”
DFC’s CEO Boehler remarked, “Addressing the unprecedented challenges we face today預nd preparing for future crises羊equires innovative ideas and partnerships…Today, we are bringing together the significant resources and expertise of the private sector and U.S. Government. We are pleased to support Kodak in this bold new venture. Our collaboration with this iconic American company will promote health and safety at home and around the world.”
Eastman Kodak’s Executive Chairman Jim Continenza commented, “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…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.”
Rear Admiral John Polowczyk, White House Supply Chain Task Force Lead, added, “This is about assuring our supply chains now and in the future…Kodak is stepping up to help onshore pharmaceutical production and this DPA action will allow the modernized Strategic National Stockpile to have domestic resiliency. Once Kodak ramps up we will have the ability to tap into that capacity for domestic use.”
The report explained that Kodak Pharmaceuticals mission will be to produce essential critical pharmaceutical components that, according to the U.S. Food and Drug Administration (FDA), have recently lapsed into chronic national short supply. It is anticipated that the loan from DCF will accelerate Kodak’s time to market by supporting ramp-up costs needed to expand, upgrade and repurpose its facilities in Rochester, N.Y., and St. Paul, Minn.
Kodak is a global technology company headquartered in Rochester, N.Y., that focuses on print and advanced materials & chemicals. The firm has a long well-known history in the film, photography, chemical and copier business and is currently engaged in providing hardware, software, consumables and services to customers in commercial print, packaging, publishing, manufacturing and entertainment.
Eastman Kodak began the day with a market cap of around $114.6 million with approximately 43.7 million shares outstanding and a short interest of about 3.9%. KODK shares opened more than 260% higher today at $9.63 (+$7.01, +267.56%) over yesterday’s $2.62 closing price and reached a new 52-week high price this morning of $11.80. The stock has traded today between $7.62 and $11.80 per share and is presently trading at $8.52 (+$5.90, +225.19%).
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