×
× Digital News Videos Opinion Special Reports Lifestyle Central Coast Eastern Nairobi North Eastern Nyanza Rift Valley Western Business News Stocks Financial Standard Africa Asia America Europe Weird News Editorial Commentary Letters Crazy World Features Entertainment Money & Careers Health & Science Sci & Tech Home & Away Generation Next Cartoon Education Pointblank Environment Travel & Destination Columns Kipkoech Tanui uReport Kiambu Murang'a Nyandarua Kirinyaga Nyeri Baringo Bomet Elgeyo Kajiado Kericho Laikipia Nakuru Nandi Narok Samburu Trans Nzoia Turkana Mombasa Kwale Kilifi Tanariver Taita Taveta Kakamega Vihiga Bungoma Busia Siaya Kisumu Homabay Migori Kisii Nyamira Nairobi Uasin Gishu West Pokot Sunday Magazine The Hague Trial Kenya @ 50 Education and Training Health and Environment Insurance and Financial Security Housing Current Affairs Humour Makau Mutua David Oginde Clay Muganda Comand Your Morning Mohamed Wehliye Wednesday Life Alexander Chagema Arts & Culture Kamotho Waiganjo Barrack Muluka Xn Iraki Urban Rights - By Steve Ouma Branding Voice KCB Fredrick Ogola Sunday Magazine Wanja Kavengi Njoki Kaigai David Oginde Ken Opalo Daisy Maritim Houghton Irungu Hustle News Group Stages Round of 16 Quarter Finals Semi Finals Finals Third Place play-offs Opinion Dr Pesa Podcasts Round Table Sepetuko Eve Woman Ramadhan Special Fact Check Correction Explainers The Standard Insider Blog E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS
×

Kodak shares up after COVID-19 drugs deal

By Sara Okuoro | July 30th 2020 at 01:00:00 GMT +0300

Shares of Eastman Kodak Co. leapt 2,441 per cent higher this week, sending its market valuation to nearly USD2 billion (Sh215 billion).

This is after it won a government loan to help produce ingredients used in key generic medicines to fight the coronavirus.

The firm gained as much as 655 per cent on Wednesday. More than 110 million shares traded hands, more than 23 times its typical volume.

Kodak will use the USD765 million (Sh82 billion) from the government to produce ingredients for generic medicines, including some that could be used to treat Covid-19.

Covid 19 Time Series

 

The development bank loan was the first of its kind under the Defense Production Act in collaboration with the US Department of Defense, and intended to speed production of drugs in short supply and those considered critical to treat Covid-19, including hydroxychloroquine, the controversial antimalarial drug hyped by President Donald Trump.

Kodak said Tuesday it will produce pharmaceutical components that have been identified as essential but have lapsed into chronic national shortage, as defined by the Food and Drug Administration.

The company said it will expand existing facilities in Rochester, New York and St. Paul, Minnesota under a new Kodak Pharmaceuticals arm. 

“Kodak is proud to be a part of strengthening America’s self-sufficiency in producing the key pharmaceutical ingredients we need to keep our citizens safe,” Kodak Executive Chairman Jim Continenza said in a statement. “By leveraging our vast infrastructure, deep expertise in chemicals manufacturing, and heritage of innovation and quality, Kodak will play a critical role in the return of a reliable American pharmaceutical supply chain.”

Kodak, the 131-year-old photography giant whose business and shares were devastated by the switch to filmless cameras, fell into bankruptcy in 2012 after failed attempts to remake its analogue film business.

This is not the first time Kodak has tried to shift its business model.

In 2018, latching on to the popularity of the blockchain and cryptocurrencies, the firm lended its familiar brand name to KodakCoin — a tool to help photographers secure payment for digital image rights. A move that sent its shares briefly soaring in value.

In the early 1990s, Kodak was involved in production of non-prescription medicines such as aspirin. It eventually sold the business to health care giant SmithKline Beecham for USD2.925 billion in 1994.


Kodak COVID-19 Coronavirus drugs Kodak Shares
Share this story

THE STANDARD INSIDER

Read More

Feedback