Kodak Transforms from Photo Film to Pharmaceutical Company... "Received Loan from US Government"

[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Eastman Kodak, famous for its film cameras, is transforming into a pharmaceutical company by receiving a loan from the U.S. government amid the COVID-19 pandemic.

On the 28th (local time), according to the Wall Street Journal (WSJ) and others, Kodak received a loan of $765 million (approximately 920 billion KRW) from the U.S. International Development Finance Corporation (DFC) and launched "Kodak Pharmaceuticals." This loan was the first to be made under an executive order by President Donald Trump in May based on the Defense Production Act. Foreign media evaluated this loan as a measure to reduce U.S. dependence on overseas sources in the pharmaceutical sector.

Forty percent of the active pharmaceutical ingredients distributed worldwide are used for producing generic drugs for Americans. However, only 10% of these are produced in the U.S. Kodak plans to produce the raw materials needed for generic drugs going forward. President Trump said, "This is a groundbreaking step in bringing pharmaceutical manufacturing facilities back to the United States."

Kodak was established in 1888 and grew into a global company with a high market share in photographic film and cameras, but as digital cameras and smartphones became widespread, it fell behind industry trends and filed for bankruptcy in 2012. Kodak developed a digital camera in 1975 but failed to commercialize it.

Jim Continenza, Kodak's Chief Executive Officer (CEO), expects the pharmaceutical sector to account for 30-40% of the company's overall business in the future. Following the news of the U.S. government's loan to Kodak's pharmaceutical business, Kodak's stock price soared to three times the previous day's level, closing at $7.94.

This content was produced with the assistance of AI translation services.