KODAK SHARE PRICE SKYROCKETS AFTER ANNOUNCEMENT FROM DONALD TRUMP
THE COMPANY MADE IT’S FORAY INTO THE PHARMACEUTICAL INDUSTRY
Remember Kodak? A film and camera company we all trusted a few years back? The company has been dead for years as the digital era had hit it hard. Now, the company is making news as Kodak share price has soared after an important announcement by US President Donald Trump.
On Tuesday, Donald Trump announced that the company would be transformed into a pharmaceutical producer as per the Defence Production Act. For that, the company would receive a USD 765 (about AUD 1068) million loan. The new version of the company, Kodak Pharmaceuticals, will produce generic active pharmaceutical ingredients to ensure that the US’s dependency on foreign drug makers is reduced.
The key plan is to let Kodak Pharmaceuticals produce ingredients that are used in generic drugs to help in fighting the rising numbers of coronavirus cases. It will likely be done until a coronavirus cure is discovered. As expected, Kodak share price soared quickly soon after the news. What surprised most people, especially investors of the stock markets, is the fact that Kodak share price rose too dramatically.
The rise is Kodak share price was not without hiccups. The New York Stock Exchange had to halt trading in the share at least 20 times on Wednesday. The stock climbed over 650% at its highest.
It should be highlighted here that Kodak filed for bankruptcy in 2012 and turned itself into a materials and chemical company in 2013. The company manufactures key materials for several pharmaceuticals, but it needs to expand its capacities. The company will need about three and a half years to build the new production capacity, said Kodak CEO Jim Continenza. He also highlighted that the company would hire over 350 workers in New York State, and it might create around 1200 indirect jobs. He said, “We’re excited to bring those jobs back to New York.”
The rise is Kodak share price is admirable, and the company’s market valuation has also risen from USD 92 million to USD 1.5 billion in about the same time we have to wait for a blood test report. Retail traders have been very active since the coronavirus pandemic started, and stock brokerage companies have seen a huge demand in the last few months. This move by Donald Trump to revive Kodak was a boon for them and they contributed a lot towards Kodak share price amazing rise.
