Home / Innovative / Kodak’s drug manufacturing deal with the US government appears to be on hold

Kodak’s drug manufacturing deal with the US government appears to be on hold

An agreement between the US government and Kodak to develop generic ingredients appears on hold after the US International Development Finance Corporation tweeted that “recent allegations of misconduct raise serious concerns.”

“We will not proceed until these allegations are resolved,” tweeted the agency, without disclosing the allegations.

Kodak announced Friday that it is conducting an internal review of the company’s recent activities related to a $ 765 million loan it would receive under the Defense Production Act to manufacture pharmaceuticals. The company̵

7;s share price soared in the days leading up to the announcement of the deal. CBS News reported Senator Elizabeth Warren (D-MA) called on the Securities and Exchange Commission to investigate whether there have been any cases of insider trading.

Kodak, known for its camera and film equipment, said it plans to create a new line of business called Kodak Pharmaceuticals to manufacture ingredients that are “suffering from chronic national deficiencies.” Jim Continenza, Kodak CEO, said The Wall Street Journal He reckoned drugs would make up 30 to 40 percent of the company’s business. The company’s plans included making ingredients for drugs such as hydroxychloroquine, according to reports The Wall Street Journal. President Trump has touted hydroxychloroquine as a possible treatment for COVID-19 despite evidence that the antimalarial drug was ineffective against the virus.

MP Maxine Waters (D-CA), chair of the House Financial Services Committee and other Democrats, sent a letter to DFC boss Adam Boehler on August 4, asking why the agency was supporting a loan for Kodak, “an organization which was on the verge of failure in 2012 and was unsuccessful in its previous foray into pharmaceutical manufacturing as it attempted to develop the capacity to manufacture up to 25 percent of domestic pharmaceutical components. “The committee is asking for all communications regarding the loan.

A Kodak spokesman declined to comment on Saturday.

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