Camera-maker Kodak to manufacture drug ingredients, secures $765 mn loan from US govt

With camera sales on the decline, Kodak, the famous maker of cameras and shooting equipment, has stepped into the medicine industry now. 

The company secured a loan of $765mn from the US government in a bid to reduce dependence on foreign countries for medical supplies. Kodak is set to produce the basic ingredients used in coronavirus drugs to treat the symptoms.

As there is no 100 percent effective medicine in the ropes, this remains a hit-and-trial effort. After the announcement, the shares of the company shot up by more than 60 percent.

"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," announced Jim Continenza, the company's executive chairman.

According to Continenza, Kodak Pharmaceuticals would need three to four years to achieve large-scale production of medicinal ingredients

"If we have learned anything from the global pandemic, it is that Americans are dangerously dependent on foreign supply chains for their essential medicines," said Peter Navarro, a White House spokesman.

The US president, Donald Trump called it "one of the most important deals in the history of US pharmaceutical industries."

He also referred to Kodak as "a great American company."

Earlier, another camera making company Fujifilm moved on to the Pharma industry. The Japanese company has begun experiments on vaccines, with trials underway. Apart from Fujifilm, several other Pharma companies are also working on vaccines, with large-scale trials already underway. Russia, for instance, may make its vaccine public as early as August, making it the first in any country.

Kodak history

Kodak was founded as 'The Eastman Kodak Company' in 1888 by George Eastman. Owing to its classic cameras, it became a global household name for photography.

Kodak has been struggling financially for the past two decades due to the shift in digital photography. In 2012, the company filed for bankruptcy protection in the US. It began making drug ingredients four years ago but hadn't thought of expanding production until after the pandemic hit.