DFC to sign Letter of Interest for investment in Kodak’s expansion into pharmaceuticals
Eastman Kodak Company (Kodak) to support the launch of Kodak Pharmaceuticals. The new business unit will produce critical pharmaceutical components that have been identified as essential but have lapsed into chronic national shortage as defined by the Food and Drug Administration (FDA).
Once fully operational, Kodak Pharmaceuticals will have the capacity at Eastman Business Park to produce up to 25 percent of active pharmaceutical ingredients used in non-biologic, non-antibacterial, generic pharmaceuticals while supporting 360 direct jobs and an additional 1,200 indirectly.
At the direction of President Donald J. Trump, U.S. International Development Finance Corporation (DFC) Chief Executive Officer Adam Boehler will today sign a letter of interest (LOI) to provide a $765 million loan to Eastman Kodak Company (Kodak) to support the launch of Kodak Pharmaceuticals. The project 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 (DOD) to collaborate in support of the domestic response to COVID-19 under the Defense Production Act (DPA).
“Addressing the unprecedented challenges we face today—and preparing for future crises—requires innovative ideas and partnerships,” said Boehler. “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.”
“Kodak is proud to be a part of strengthening America’s self-sufficiency in producing the key pharmaceutical ingredients we need to keep our citizens safe,” said Kodak Executive Chairman Jim Continenza. “By leveraging our vast infrastructure, deep expertise in chemicals manufacturing, and heritage of innovation and quality, Kodak will play a critical role in the return of a reliable American pharmaceutical supply chain.”
“This is about assuring our supply chains now and in the future,” said Rear Admiral John Polowczyk, White House Supply Chain Task Force Lead. “Kodak is stepping up to help onshore pharmaceutical production and this DPA action will allow the modernized Strategic National Stockpile to have domestic resiliency. ”
Boehler and Continenza will sign the LOI and be joined by Navarro, Polowczyk, and Deputy Secretary of Defense David Norquist. The signing ceremony will follow recorded remarks from President Trump and New York Governor Andrew Cuomo.
Although Americans consume approximately 40 percent of the world’s supply of bulk components used to produce generic pharmaceutics, only 10 percent of these materials are manufactured in the United States.
Signed by President Trump on May 14, Executive Order 13922 delegates authority to the DFC CEO under the DPA to leverage its financial tools to re-shore production of strategic resources and strengthen related domestic supply chains in response to COVID-19. This authority is carried out in close partnership and coordination with DOD, which bears all costs of DFC’s DPA program.