Kodak Branches Out With New Pharmaceutical Business Backed by the US Government
Kodak recently announced it is creating ‘a new business arm,’ called Kodak Pharmaceuticals to yield ingredients needed to manufacture medicines.
Kodak recently announced it is expanding operations into pharmaceuticals backed by the U.S. government planning to provide the firm with a loan amounting to $765 million to support its initiatives.
Kodak said it is creating a new business arm, called Kodak Pharmaceuticals, to yield ingredients needed to manufacture medicines.
According to Kodak CEO Jim Continenza, Kodak Pharmaceuticals will develop ingredients that have already lapsed into chronic nationwide scarcity. Once the unit is entirely up and running, the said business arm will be able to make up to one-fourth of active pharmaceutical ingredients used to produce non-biologic, non-antibacterial, generic pharmaceuticals.
Continenza added, he is expecting this latest development to ultimately contribute up to 40 percent of the firm's business.
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Plan to Manufacture Hydroxychloroquine
The US grant of a $765-million loan is made available under the Korean War-era Defense Production Act, which the present administration has formerly utilized to accelerate the production of face masks, ventilators and other medical supplies to combat COVID-19.
As part of its pharmaceutical effort, Kodak is planning to manufacture hydroxychloroquine, which has been eyed for months as a potential drug for the treatment for COVID-19. However, according to some reports, it has repeatedly been tried, but proven ineffective as a cure for the said infectious disease.
In one of his recent interviews, National Institute of Allergy and Infectious Disease, Anthony Fauci said that the overwhelming predominant clinical tests that have studied the efficiency of hydroxychloroquine have indicated that the drug is not effective in the treatment of COVID-19.
This is not Kodak's first time to venture into pharmaceuticals, although it was only able to retain the business for a few years in the past. In 1988, Kodak bought Sterling Drug for an estimate of $5.1 billion. It eventually sold its purchase in 1994.
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Government Backing
To date, Kodak has successfully gone through the initial screening by the US International Development Finance Corporation. The process will then be followed by standard due diligence, which the US agency is set to conduct before formalizing the financial support pledged.
Once completely operational, Kodak Pharmaceuticals is to have an Eastman Business Park site located in Rochester, New York.
Aside from the 26 percent production of active pharmaceutical ingredients, this new business arm of the company is also set to provide more than 350 direct employments, and additional indirect jobs of over 1,000.
According to the White House's Dr. Peter Navarro, this pandemic has exposed U.S. susceptibility in relying on medicines produced overseas.
He added that if there is something learned from this global health crisis, it is that the U.S. is "dangerously reliant" on overseas supply chains for their essential drugs.
This partnership between Kodak and the DPC, according to Navaro, is a significant win for the use of DPA powers of President Trump.
It is also a big win, not to mention, a major step ahead toward American pharmaceutical independence.
Meanwhile, Continenza said the firm is proud to be a partner in strengthening the self-sufficiency of America in the production of key pharmaceutical ingredients needed to keep Americans safe.
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Jul 28, 2020 10:45 PM EDT
