President Trump’s highly publicized $765 million strategy to turn filmmaker Eastman Kodak Company to a pharmaceutical manufacturer is on hold, unless the company may clear up “serious concerns”—maybe triggered by a major jump in Kodak’s stock price plus also a stock bargain for your company’s top executives —based on a set of tweets in a national agency.
The U.S. International Development Finance Corporation stated July 28 it planned to sign a letter of interest to supply a $765 million loan to the founder of the “Kodak moment,” to encourage the launching of Kodak Pharmaceuticals, a new arm of this firm made to generate crucial pharmaceutical elements, as a way to decrease the nation’s dependence on foreign drug resources throughout the Covid-19 pandemic.
Soon after the agreement was announced, queries were raised following the company’s share price taken up; it had been reported that stock-option grants were made to executives and board members, including the chief executive, before the deal was announced, according to the Wall Street Journal.
In a tweet Friday, the DFC said “recent allegations of wrongdoing raise serious concerns,” adding, “we will not proceed any further unless these allegations are cleared.”
The company, which declined to comment Saturday, on Friday announced in a news release it was appointing a “special committee of independent directors … to oversee an internal review of recent activity by the company and related parties” in connection with the potential loan.
Senator Elizabeth Warren (D- Mass.) sent a letter asking the U.S. Securities and Exchange Commission to investigate whether insider trading laws have been broken, according to CBS News.
The July news release announcing the proposed agreement noted that the letter of interest was being signed “at the direction of President Donald J. Trump,” and would “mark the first use of new authority delegated by President Trump’s recent executive order that enables DFC and the U.S. Department of Defense” to work together to bolster the domestic response to Covid-19 under the Defense Production Act.
“We are pleased to support Kodak in this bold new venture. Our collaboration with this iconic American company will promote health and safety at home and around the world.”
40%: Americans consume about 40% of the world’s supply of bulk components used to produce generic pharmaceutics, but only 10% of the materials are manufactured in the United States, based on this DFC. Once fully operational, Kodak Pharmaceuticals planned to produce up to 25% of active pharmaceutical ingredients used in some non-antibacterial, generic pharmaceuticals, with a payroll of 360 direct jobs.
While Kodak might seem an unlikely choice to make drug ingredients, the company stated its “vast infrastructure, deep expertise in chemicals manufacturing, and heritage of innovation and quality,” made it well suited to “play a critical role in the return of a reliable American pharmaceutical supply chain.” And it can help the organization, which filed for bankruptcy protection in 2012, find a new focus after smartphones and digital photography shellacked its traditional business.
Kodak bargain with US government to generate pharmaceuticals Seems to be on hold (The Verge)
Kodak announces initiative to make Kodak Pharmaceuticals (Kodak)
About The Fifth Anniversary Of Kodak’s Bankruptcy, How Do Big Companies Sustain Innovation? (Forbes)