Eastman Kodak stocks soared on Tuesday after President Donald Trump announced a deal to work with the company to produce ingredients in generic drugs in the fight against the coronavirus.
Shares of Kodak increased more than 60% in extended trading. The stock more than tripled during Tuesday’s regular trading for its best day ever. This comes after the US government awarded the company a $765 million load to start producing drug ingredients under the Defense Production Act.
“Our 33rd use of the Defense Production Act will mobilize Kodak to make generic, active pharmaceutical ingredients,” Trump said in a press conference Tuesday evening. “We will bring back our jobs and we will make America the world’s premier medical manufacturer and supplier.” Also Read– Allstate acquires National General for US$4 billion in cash
Kodak revealed on Tuesday that it would begin producing pharmaceutical components that have been identified as essential but have experienced a chronic national shortage, as defined by the Food and Drug Administration.
Kodak market value triples overnight
The surge in stock price pushed Kodak’s market value to $347 million as of Tuesday’s close. Before Tuesday, the market value was about $115 million. The company also said it would expand existing facilities in Rochester, New York and St. Paul.
“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.”