One-time photography king Eastman Kodak Co. has secured a $765 million government loan under the Defense Production Act to help expedite domestic production of pharmaceutical drugs, according to a report in the Wall Street Journal.
The loan is designed to develop starter materials and active pharmaceutical ingredients for the treatment of a variety of medical conditions, rebuild domestic supply chains, and reduce the U.S. reliance on hostile foreign sources such as China.
The loan, the first of its kind under the DPA, is from the U.S. International Development Finance Corp., a government agency that operates like a bank. It is similar to a commercial loan and must be repaid over 25 years.
Kodak, which failed to take advantage of its own invention — the digital camera — and filed for bankruptcy in 2012, has a history of producing chemicals and advanced materials. Company officials say its existing infrastructure will enable it to quickly pivot to the production of pharmaceutical ingredients, which eventually could make up 30% to 40% of its business.
