Eastman Kodak Company received a $765 million loan from the United States International Development Finance Corporation (DFC) to support the launch of Kodak Pharmaceuticals, a new arm of the company that will produce critical pharmaceutical components, the DFC and the company said in a July 28, 2020 press release that announced DFC’s signing of a letter of intent (LOI). The agreement aims to increase domestic production to strengthen the US API supply chain. Kodak Pharmaceuticals will produce critical pharmaceutical components that have been identified as essential but have lapsed into chronic national shortage, as defined by FDA.
“Addressing the unprecedented challenges we face today—and preparing for future crises—requires innovative ideas and partnerships,” said DFC CEO Adam Boehler, in the press release. “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.”
“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, in the press release. “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.”
According to the press release, the project would mark the first use of new authority delegated by President Trump’s recent executive order that enables DFC and the US Department of Defense to collaborate in support of the domestic response to COVID-19 under the Defense Production Act (DPA).
“This is about assuring our supply chains now and in the future,” said Rear Admiral John Polowczyk, White House Supply Chain Task Force Lead, in the press release. “Kodak is stepping up to help onshore pharmaceutical production, and this DPA action will allow the modernized Strategic National Stockpile to have domestic resiliency. Once Kodak ramps up we will have the ability to tap into that capacity for domestic use.”
DFC’s loan will support startup costs needed to repurpose and expand Kodak’s existing facilities in Rochester, NY and St. Paul, MN. The company plans to incorporate continuous manufacturing and advanced technology capabilities to make APIs used in non-biologic, non-antibacterial, generic pharmaceuticals.
The LOI indicates Kodak’s successful completion of DFC’s initial screening and will be followed by standard due diligence conducted by the agency before financing is formally committed.
