What's Kodak's connection to Trump? Fury after firm wins $765M loan for drug production including hydroxychloroquine
In a piece of startling news, The Eastman Kodak Company will receive a $765 million loan from the federal government in order to start producing pharmaceutical ingredients. Known for making film and photography-related products, the company is launching a new division called Kodak Pharmaceuticals, which will focus on producing two types of chemicals used to manufacture generic pills and tablets.
No sooner was the news announced, the company's stocks shot up and almost tripled. Soon, the company tweeted: "Kodak is proud to be a part in strengthening America’s self-sufficiency in producing the key pharmaceuticals we need to keep our citizens safe. More to come at the signing ceremony."
The official press release read, "At the direction of President Donald Trump, US 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, a new arm of the company that will produce critical pharmaceutical components."
It further said, "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,” Boehler said. “Today, we are bringing together the significant resources and expertise of the private sector and the 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.”
Meanwhile, White House's Dr Peter Navarro added, “This DFC-Kodak partnership is a big win for the use of President Trump’s DPA powers, a big win for New York, and a huge step forward towards American pharmaceutical independence.”
Rear Admiral John Polowczyk, White House Supply Chain Task Force Lead said, “Kodak is stepping up to help onshore pharmaceutical production and this DPA action will allow the modernized Strategic National Stockpile to have domestic resiliency.”
The news soon created quite a buzz on Twitter and people don't think it would be a successful venture. "I wish this to be successful but it can’t be. Kodak’s current management has no connection to anything related to chemicals and very little related even to manufacturing. They’re really just managing a book of liabilities. I believe this is just another Trump administration scam," one tweet said and another read, "Now we need to know how much Kodak is kicking back to Trump."
Others had several doubts about the new decision. "You mean Kodak? They used to own Eastman Pharmaceutical years and years ago before you got here. They may still have the means to make pharmaceuticals," one Twitter user posted and another said, "I live here in Rochester. I know it’s not well known but Kodak is groundbreaking in chemical science. It’s that technology along with space we have here for them to do it. Now can they execute is the next question."
Many others thought it was just another scam by POTUS. "The Kodak deal is just a sweetheart deal to reward one of Trump's supporters. At this point, anyone who believes anything this terrible president says is crazy! All you have to do is look back at the many thousands of LIES this man has told & that should be enough to convince you," one said and another posted, "Which of Trump’s cronies are benefitting from this ‘great deal’ to make Kodak a pharmaceutical company? And why not fund established pharmaceuticals, huh?!"
The rise in stocks stumped several Internet users and they couldn't fathom it. "3 things: 1) I am willing to bet my left arm, someone in @realDonaldTrump(s)orbit secretly bought up stocks etc yesterday. 2)By the time Kodak gets infrastructure in place, there will be a vaccine. 3) Like the world needs another Trump University type pharmaceutical company," one tweet read and another said, "Someone in Kodak is getting rich or trump family and friends have stocks.. just double in 1 day."
According to The Wall Street Journal, those drugs include the antimalarial drug hydroxychloroquine, which Trump earlier touted as a potential cure for Covid-19, despite WHO's claims that there is no effect of it on Covid-19 patients. The Rochester-based company that invented the digital camera will have to repay the loan over 25 years, according to the Journal. Whether the new plan works or not, the biggest question in many minds is: What is Kodak's connection with Trump? Well, only time will tell. Until then we can just wait.