(Reuters) – Eastman Kodak Co (KODK.N) will obtain a $ 765 million loan from the US government to produce pharmaceutical ingredients in the country, which will help reduce dependence on other countries by strengthening national supply chains.
The company’s shares were trading at $ 8.80 after closing at $ 2.62 in the previous session.
The US International Development Finance Corporation said Tuesday it would sign a letter of interest to provide the loan to Kodak, a company best known for its camera and imaging business. (bit.ly/2P2bzXB)
The Trump administration has been seeking to bolster the ability to produce drugs and their raw materials in the United States after the COVID-19 pandemic exposed China’s and India’s dependence on industry for its supply chain.
“This is the beginning of American independence for our pharmaceutical dependency on foreign countries,” White House trade adviser Peter Navarro said in an interview with the Fox Business network. (fxn.ws/3jNiwts)
In May, the administration awarded a contract worth up to $ 812 million for a new American company to manufacture drugs and drug ingredients in the country.
New York-based Kodak, founded in 1888, has a market capitalization of $ 114.6 million. The loan will allow him to launch Kodak Pharmaceuticals, a new arm of the company that will produce critical pharmaceutical components.
“By the time this increases, 25% of the (active pharmaceutical ingredients) for the generics we need in the United States will be at that facility,” Navarro said in the interview.
Reports by Dania Nadeem and Ankur Banerjee in Bangalore; Shounak Dasgupta Edition
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