Eastman Kodak receives a $ 765 million loan to manufacture drug ingredients

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(Reuters) – Eastman Kodak Co KODK.N Will receive a $ 765 million US government loan to manufacture pharmaceutical ingredients in the country and reduce reliance on other countries by strengthening domestic supply chains.

The company’s shares traded at $ 8.80 after closing at $ 2.62 in the previous session.

The US International Development Finance Corp said Tuesday it would sign a letter of interest to provide the loan to Kodak, a company better known for its camera and imaging businesses. (bit.ly/2P2bzXB)

The Trump administration has sought to strengthen drug manufacturing and raw material manufacturing capabilities in the United States after the COVID-19 pandemic exposed the industry’s reliance on China and India for its supply chain.

“This marks the beginning of America’s independence from our overseas pharmaceutical dependence,” White House trade advisor Peter Navarro said in an interview with Fox Business Network. (fxn.ws/3jNiwts)

In May, the government awarded a contract worth up to $ 812 million to a new US company to manufacture drugs and active ingredients in the country.

New York-based Kodak was founded in 1888 and has a market capitalization of $ 114.6 million. The loan enables the creation of Kodak Pharmaceuticals, a new division of the company that will manufacture critical pharmaceutical components.

“When this thing comes up, 25% of the (active pharmaceutical ingredients) generic drugs that we need in the United States will be right in this facility,” Navarro said in an interview.

Reporting by Dania Nadeem and Ankur Banerjee in Bengaluru; Adaptation by Shounak Dasgupta

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