Kodak signs U.S. deal to make drug ingredients

The U.S. has turned to an American corporate icon for help in its bid to boost domestic sources for drug ingredients in the fight against the coronavirus.

Eastman Kodak reportedly has signed a deal with the U.S. government to produce pharmaceutical ingredients in the U.S.

The news sent Kodak shares up four-fold in early trading.

The Wall Street Journal reports Kodak was awarded a $765 million loan under the Defense Production Act to speed up domestic production of drugs and lessen America's reliance on foreign sources like China and India. That's the same act President Donald Trump invoked to aid companies building ventilators. The Journal says the ingredients Kodak will make will be used in generic drugs that include hydroxychloroquine, the antimalarial drug Trump has touted to treat the coronavirus.

Kodak filed for bankruptcy protection in 2012 after failing to embrace modern technologies such as the digital camera.

The company told the daily the loan will create up to 350 jobs in New York and Minnesota.

Kodak did not immediately respond to a request for comment.

Video Transcript

FRED KATAYAMA: The US has turned to an American corporate icon for help in its bid to boost domestic sources for drug ingredients in the fight against the coronavirus. Eastman Kodak reportedly has signed a deal with the US government to produce pharmaceutical ingredients in the US. The news sent Kodak shares up fourfold in early trading.

The "Wall Street Journal" reports Kodak was awarded a $765 million loan under the Defense Production Act to speed up domestic production of drugs and lessen America's reliance on foreign sources like China and India. That's the same act President Donald Trump invoked to aid companies building ventilators.

The "Journal" says the ingredients Kodak will make will be used in generic drugs that include hydroxychloroquine, the antimalarial drug Trump has touted to treat the coronavirus.

Kodak filed for bankruptcy protection in 2012 after failing to embrace modern technologies such as the digital camera.

The company told the daily the loan will create up to 350 jobs in New York and Minnesota. Kodak did not immediately respond to a request for comment.