The Trump administration has been looking to bolster the ability to produce drugs and their raw materials in the United States after the Covid-19 pandemic exposed the industry's dependence on China and India for its supply chain. This is after it won a government loan to help produce ingredients used in key generic medicines to fight the coronavirus.
The company will also produce products at a facility in St. Paul, Minnesota. The plan calls for Kodak to eventually be able to produce 25% of the active pharmaceutical ingredients needed in the United States.
Kodak will be adding 300 jobs in Rochester, and another 1,200 indirect support jobs to come along with it.More news: Google teases new Pixel phone and reveals launch date
Kodak will initially produce essential pharmaceutical ingredients that fell under "chronic national shortage".
To create this division, Kodak has received a $ 765 million loan from the US government, through the US International Development Finance Corporation. The money could provide a lifeline to the Rochester, New York based company.
Kodak shares climbed as much as 66% in pre-market trading on Wednesday. The surge in stock price pushed Kodak's market value to $347 million as of Tuesday's close.More news: Meghan asks court to keep identities of friends secret in legal action
"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 executive chairman Jim Continenza stated in the DFC news release.
In May, the administration awarded a contract worth up to $812 million for a new USA company to manufacture drugs and drug ingredients in the country.
Indeed, in 2012 the companyfiled for bankruptcy protection as the shift to digital cameras devastated the business and has since sold off assets amid a plodding attempt at reinvention that never paid off.More news: Yet another jump in Kane County COVID-19 cases on Wednesday
You probably owned a Kodak camera at some point in time and most of you know the company used to be a pioneer in the film photography scene. Kodak Pharmaceuticals would balance that difference.