Eastman Kodak has signed a letter of intent for a $765 million US government loan with which it plans to begin production of critical active pharmaceutical ingredients (APIs) that the US now imports. The government loan will help support startup costs needed to repurpose and expand Kodak’s existing facilities in Rochester, New York, and St. Paul, Minnesota. Kodak Pharmaceuticals will make critical pharmaceutical ingredients that have been identified as essential but have lapsed into chronic national shortage, as defined by the Food and Drug Administration.
At the direction of US President Donald J Trump, US International Development Finance Corporation (DFC) chief executive officer Adam Boehler has signed a letter of interest (LOI) to provide the loan to Kodak to support the launch of Kodak Pharmaceuticals, a new arm of the company that will produce critical pharmaceutical components. 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).
“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.”
“Addressing the unprecedented challenges we face today—and preparing for future crises—requires innovative ideas and partnerships,” said Boehler. “Today, we are bringing together the significant resources and expertise of the private sector and US Government. 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.”
Once fully operational, Kodak Pharmaceuticals will have the capacity to produce up to 25% of active pharmaceutical ingredients used in non-biologic, non-antibacterial, generic pharmaceuticals while supporting 360 direct jobs and an additional 1,200 indirectly. The company plans to coordinate closely with the Administration and pharmaceutical manufacturers to identify and prioritize components that are most critical to the American people and U.S. national security.
