Eastman Kodak soared on Tuesday after President Donald Trump announced a contract to work with the photo pioneer to produce generic ingredients in response to the coronavirus pandemic.
Kodak shares increased more than 60% in expanded trading. The stock more than tripled during its regular trading on Tuesday for its best day yet after the U.S. government granted the company a $ 765 million loan for the manufacture of pharmaceutical ingredients under the Defense Production Act, the first of its kind had granted.
"Our 33rd application of the Defense Production Act will mobilize Kodak to manufacture generic pharmaceutical ingredients," Trump said in a press conference on Tuesday evening. "We will bring our jobs back and make America the world's leading medical manufacturer and supplier."
Kodak said on Tuesday that it will produce pharmaceutical components that have been identified as essential but are in chronic national deficiency, as defined by the Food and Drug Administration.
The rise in the share price pushed Kodak's market value to $ 347 million at the close on Tuesday. Before trading on Tuesday, it had a market value of around $ 115 million.
The company said it will expand existing facilities in Rochester, New York, and St. Paul, Minnesota, under a new branch of Kodak Pharmaceuticals.
"Kodak is proud to be part of strengthening America's self-sufficiency in manufacturing the key pharmaceutical ingredients we need to keep our citizens safe," said Jim Continenza, Kodak's executive chairman, in a statement. "By leveraging our extensive infrastructure, chemical expertise, and heritage of innovation and quality, Kodak will play a critical role in returning to a reliable American pharmaceutical supply chain."
Kodak filed for bankruptcy in 2012 when the move to digital cameras devastated the business. The transition to pharmaceutical production is an opportunity for the former market leader in film and photography.
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