Kodak rose another 60% after Trump announced a deal to manufacture generic drug ingredients

Eastman Kodak rose on Tuesday after President Donald Trump announced a deal to work with a photography pioneer to produce ingredients in generic drugs in response to the coronavirus.

Kodak shares rose more than 60% in extended trading. The stock more than tripled during regular trading on Tuesday for its best day ever after the US government awarded the company a $ 765 million loan to start producing drug components under the Defense Production Act, the first of its kind.

Trump said at a press conference Tuesday evening: Our thirty-third use of the Defense Production Act would mobilize Kodak to make active and effective pharmaceutical ingredients. "We will restore our jobs and make America the first medical manufacturer and supplier in the world."

Kodak said on Tuesday that it would produce pharmaceutical ingredients that were identified as essential but had suffered from a chronic national shortage, as identified by the Food and Drug Administration.

The rise in share prices pushed Kodak's market value to $ 347 million until Tuesday's close. Before Tuesday's trading, its market value was approximately $ 115 million.

The company said it will expand existing facilities in Rochester, New York and St. Paul, Minnesota, under a new arm of Kodak Pharmaceuticals.

"Kodak is proud to be part of enhancing America's self-sufficiency in producing the major pharmaceutical ingredients we need to maintain the safety of our citizens," Jim Contenza, Kodak CEO, said in a statement. “By taking advantage of our huge infrastructure and deep experience in chemical manufacturing and the legacy of innovation and quality, Kodak will play a critical role in the return of a reliable American pharmaceutical supply chain.”

Kodak filed for bankruptcy in 2012 as the switch to digital cameras destroyed the work. The transition to drug production represents a fighting opportunity for the former leader in cinema and photography.

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