Eastman Kodak (KODK) - Get Eastman Kodak Company Report shares tripled Tuesday after a report said the erstwhile photography king has been granted a $765 million government loan to boost production of a variety of drugs.
Kodak now makes print and advanced materials and chemicals. The U.S. International Development Finance Corp. is making the loan under the Defense Production act and hopes to curb U.S. dependence on drugs made overseas, The Wall Street Journal reported.
Kodak will make ingredients for generic drugs, including the anti-malarial drug hydroxychloroquine that President Trump is high on - and took - as treatment for the coronavirus.
The government wants to wean the country off dependence on China and India, Kodak CEO Jim Continenza and U.S. officials told the Journal.
Kodak shares stood at $8.80 in premarket trading, up an astronomical 235.88%. The stock has slumped 35% year to date through Monday. It jumped 25% Monday.
The stock has plummeted 91% since 2013.
On Friday, Trump issued executive orders that seek to limit drug prices.
The four orders call for rebates and tying prices to costs paid abroad.
One of the orders would make it easier for states to allow some cheap drugs to come here from Canada. Drug companies are adamantly opposed to importing cheaper drugs from abroad, The order would resurrect the administration’s proposal on the issue from last year.
Another order would create an “international pricing index” to keep Medicare drugs prices in line with those of countries that have much lower prices, the so-called “most favored nations” clause.