UPDATE: Shares of legacy camera manufacturer Eastman Kodak (NYSE:KODK) today surged 567% causing the Nasdaq to halt trading thrice due to the price spike and high volumes. Today's rally was triggered by the $765 million loan advanced to the firm yesterday.
The US government advanced the loan to Kodak under the Defense Production Act to help the firm start producing active pharmaceutical ingredients (APIs) used to manufacture drugs for US consumers.
We reported the details of the loan deal yesterday, which saw the company’s share price surge over 200%.
The Trump administration has been concerned about America’s over-reliance on Foreign companies based in China and India for the production of APIs used to make drugs for the American market.
These concerns became serious after the outbreak of the coronavirus, which originated in China, causing the government to encourage US pharmaceutical companies to produce APIs locally to ensure their quality and reliable supply.
Eastman Kodak share price
The loan deal will see Eastman Kodak shift from manufacturing chemical used in photography to making APIs. Fujifilm was also awarded a $265 million loan to expand its COVID-19 vaccine manufacturing operation.