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Kodak

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.

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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

A new alliance of local economic development organizations, called ROC 2025, gets its marketing campaign underway.

Plus, Eastman Kodak reports its earnings later this week but in the meantime, the company has been getting a lot of attention lately for what has happened to its stock price since the federal government granted a $765 million to the company to produce ingredients for generic drugs.

And, Wegmans ranks well in a new national survey on corporate reputations.

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.

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Eastman Kodak is reporting first-quarter financial results, and they show a decline in both earnings and revenues.

The company saw a net loss of $111 million, compared to an $18 million loss a year ago. Kodak says the change is due in part to tax related charges for locations outside the U.S.

Revenues came in at $267 million, down from $291 million a year ago.

kodak.com

Eastman Kodak is reporting its earnings and sales for 2019, and it’s a mixed picture. Earnings of $116 million were reported on Tuesday, compared to a loss of $16 million a year ago.

Revenues totaled $1.2 billion, a drop of 6% compared to last year.

In the latest WXXI Business Report, Xerox is still pursuing HP, and is now increasing its acquisition offer for the company. Plus, a new report from Paychex shows continued wage growth among small businesses, and Kodak had a strong presence at Sunday's Oscars.

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