Tuesday, July 28, 2020 6:13:50 PM
Kodak’s stock triples as company announces pandemic plan to start making pharmaceutical ingredients
https://www.marketwatch.com/story/kodaks-stock-triples-as-company-announces-pandemic-plan-to-start-making-pharmaceutical-ingredients-2020-07-28
he Trump administration’s $765 million loan to the Eastman Kodak Co. for its launch of a business making pharmaceutical ingredients sent shares of the iconic camera company soaring.
Kodak’s stock KODK, +203.05% rallied more than 200% on Tuesday after the news was announced by the Trump administration. The company emerged from a 2011 bankruptcy in 2013, and its shares tumbled from a 10-year high of $37.20 on Jan. 9, 2014, to a low of $1.55 on March 23 of this year.
The Trump administration said the Kodak deal is the first of its kind, and uses powers afforded by the Defense Production Act. The administration previously used these powers to demand that Ford Motor Co. F, +1.15% begin manufacturing respirators and masks and that General Motors Co. GM, +2.45% make ventilators.
It awarded $354 million to Phlow Corp. in May to start producing active pharmaceutical ingredients, or API, among other chemical ingredients, used in certain essential medications. A spokesperson for Phlow said that the company can’t disclose the list of drugs but that it includes treatments for pain and blood pressure that can be used by hospitalized COVID-19 patients. The total contract is worth up to $812 million. Phlow cites a shift toward producing API in China and India as the rationale behind its business model.
“The threat of pandemics like COVID-19 has exposed the United States’ heavy reliance on foreign pharmaceutical supply chains,” Phlow said in a statement at the time.
Drug makers largely do not manufacture API in the U.S., and many have instead sourced API from such lower-cost countries as China and India.
https://www.marketwatch.com/story/kodaks-stock-triples-as-company-announces-pandemic-plan-to-start-making-pharmaceutical-ingredients-2020-07-28
he Trump administration’s $765 million loan to the Eastman Kodak Co. for its launch of a business making pharmaceutical ingredients sent shares of the iconic camera company soaring.
Kodak’s stock KODK, +203.05% rallied more than 200% on Tuesday after the news was announced by the Trump administration. The company emerged from a 2011 bankruptcy in 2013, and its shares tumbled from a 10-year high of $37.20 on Jan. 9, 2014, to a low of $1.55 on March 23 of this year.
The Trump administration said the Kodak deal is the first of its kind, and uses powers afforded by the Defense Production Act. The administration previously used these powers to demand that Ford Motor Co. F, +1.15% begin manufacturing respirators and masks and that General Motors Co. GM, +2.45% make ventilators.
It awarded $354 million to Phlow Corp. in May to start producing active pharmaceutical ingredients, or API, among other chemical ingredients, used in certain essential medications. A spokesperson for Phlow said that the company can’t disclose the list of drugs but that it includes treatments for pain and blood pressure that can be used by hospitalized COVID-19 patients. The total contract is worth up to $812 million. Phlow cites a shift toward producing API in China and India as the rationale behind its business model.
“The threat of pandemics like COVID-19 has exposed the United States’ heavy reliance on foreign pharmaceutical supply chains,” Phlow said in a statement at the time.
Drug makers largely do not manufacture API in the U.S., and many have instead sourced API from such lower-cost countries as China and India.
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