WXXI AM News

Eastman Kodak

Emily Hunt for WXXI News

The federal agency that announced on July 28 that it was signing a letter of intent to provide a $765 million loan to Eastman Kodak, so that the company could establish a pharmaceutical division to make ingredients for generic drugs is now apparently putting a hold on moving ahead with that financing.

WXXI Photo

Eastman Kodak has appointed a special committee of independent members of its Board of Directors to look into recent activity surrounding a $765 million federal loan.

That loan is intended to help Kodak develop a pharmaceutical division to produce ingredients used for generic drugs, to make the U.S. less dependent on foreign sources for those medications.

U.S. Food and Drug Administration

As Kodak remains quiet on many of the details of its plan to launch a pharmaceutical division funded in large part by a federal government loan of more than $700 million, hospital pharmacy chiefs and industry analysts are divided on how sensible the idea is.

www.visitthecapitol.gov

House Democrats have launched an investigation into Eastman Kodak’s recently announced  $765 million loan from the federal government.

This comes on the heels of an investigation reportedly already underway by the Securities and Exchange Commission.

WXXI Photo

The Securities and Exchange Commission is investigating the circumstances involving last week’s announcement that Eastman Kodak will receive a $765 million government loan to make ingredients for generic drugs.

Kodak has won a $765 million government loan to make generic drugs. How did this happen? The answer is stranger than you might think, and it has a local connection.

Todd Moss worked for the State Department under President George W. Bush, is an author, and is doing global affairs work that helped bring a bipartisan solution to a question about the federal government: how can the U.S. invest overseas appropriately? They found a situation, but how did the money get back to Kodak? Was it the right thing to do? Todd Moss explains it.

Our guest:

  • Todd Moss, senior fellow at the Center for Global Development

Emily Hunt for WXXI News

Wednesday was a huge day for shares of Eastman Kodak, which rose more than 300%, closing at $33.20 per share.

The big run-up, which followed the tripling of the share price on Tuesday, came after the announcement this week that the federal government will loan Kodak $765 million to help it gear up to produce ingredients used in generic drugs.

George Conboy from Brighton Securities said it’s not a total surprise that Kodak stock is skyrocketing.

Randy Gorbman / WXXI News

The Trump Administration has signed a deal to give a $765 million loan to Eastman Kodak, so that the company can produce critical components for pharmaceuticals.

Trump Administration and Kodak officials say this new venture should create at least 300 jobs in Rochester, the home of the 130-year-old company which has had tough times in recent years after digital photography largely replaced film.  A new division will see Kodak produce components used in generic drugs.

WXXI Photo

Eastman Kodak has won a $765 million dollar government loan to help expedite domestic production of pharmaceuticals.  The story was first reported by the Wall Street Journal which quotes Kodak Executive Chairman Jim Continenza as saying he expect the loan to create about 300 jobs in Rochester, and 30 to 50 jobs in Minnesota.

Federal officials are expected in Rochester late Tuesday afternoon for the official announcement.

In the latest WXXI Business Report, Paychex has seen how efficiently some of their employees are working from home, so it's looking to reduce it's office space footprint.

You'll also hear from the CEO of Kodak Alaris responding to a trade publication claiming the company will sell off some of its assets; and a new venture capital fund is looking for investors who will back local technology companies.

Pages