Kodak To Launch Drug Division, Receives Federal Loan
Kodak, the longstanding photo and camera company, will be shifting into a new business venture over the coming weeks and months - drug manufacturing. On Tuesday the publicly-traded company announced it is due to receive a $765 million to launch the company's new pharmaceutical drug initiative.
Calling the division 'Kodak Pharmaceuticals', Kodak hopes to break into the generic drug ingredient business that is largely dominated by China and India. The newly formed pharmaceutical manufacturers' focus will be on ingredients deemed to be in a national shortage by the Food and Drug Administration. 360 permanent jobs are expected to be added in the Rochester, New York region as well as 1,200 construction jobs.
The market reacted to the Kodak news well, sending the stock soaring at one point over three hundred percent. The 765 million dollar loan was the first use of Donald Trump's authority under a newly enacted executive order aimed at a public-private partnership in response to the COVID-19 pandemic.