Eastman Kodak was fired on Tuesday after President Donald Trump announced an agreement to work with the photography pioneer to produce ingredients in generic drugs in response to the coronavirus pandemic.
Kodak shares soared over 60% in extended trading. The shares tripled during Tuesday’s regular exchange for its best day after the United States government granted the company a $ 765 million loan to start producing 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 and active pharmaceutical ingredients,” Trump said at a press conference Tuesday night. “We will take back our jobs and make the United States the world’s leading medical manufacturer and supplier.”
Kodak said Tuesday that it will produce pharmaceutical components that have been identified as essential but have fallen into a chronic national shortage, as defined by the Food and Drug Administration.
The rise in the stock price brought Kodak’s market value to $ 347 million as of Tuesday’s close. Before Tuesday’s trade, it had a market value of approximately $ 115 million.
The company said it will expand existing facilities in Rochester, New York and St. Paul, Minnesota, under a new arm from Kodak Pharmaceuticals.
“Kodak is proud to be part of strengthening America’s self-sufficiency in the production of the key pharmaceutical ingredients we need to keep our citizens safe,” Kodak Chief Executive Jim Continenza said in a statement. “By leveraging our vast infrastructure, deep chemical manufacturing expertise and heritage of innovation and quality, Kodak will play a critical role in the return of a trusted American pharmaceutical supply chain.”
Kodak filed for bankruptcy in 2012 when the move to digital cameras devastated the business. The move to drug production marks a fighting opportunity for the film and photography leader.
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