Eastman Kodak stock jumped on Tuesday after President Donald Trump confirmed an agreement to collaborate with the photography pioneer in reacting to the coronavirus outbreak to manufacture components in generic drugs.
Kodak stock prolonged trade jumped more than 60 percent. The stock more than tripled for the strongest day ever during Tuesday’s daily trading, after the U.S. government granted the company a $765 million loan to begin manufacturing drug ingredients under the Defense Production Act, the first of its kind.
“Our 33rd use of the Defense Production Act will mobilize Kodak to make generic, active pharmaceutical ingredients,” Trump said in a press conference Tuesday evening. “We will bring back our jobs and we will make America the world’s premier medical manufacturer and supplier.”
On Tuesday, Kodak stated, as described by the Food and Drug Administration, it would manufacture pharmaceutical components that have been listed as important but have fallen into chronic national shortages.
The stock price rally lifted Kodak’s market cap to $347 million at closing on Tuesday. It had a market cap of around $115 million before Trading on Tuesday. The company said it would broaden existing operations under a new Kodak Pharmaceuticals arm in Rochester, New York and St. Paul, Minnesota.
“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,” Kodak Executive Chairman Jim Continenza said in a statement. “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.”
Kodak reported for bankruptcy in 2012, as it was devastated by the transition to digital cameras. The transition to drug manufacturing represents a combat chance for the onetime film and photography chief.