Kodak shares recently traded at $53.37, more than six times Tuesday's close just below $8. The stock closed at $2.62 on Monday.
Late Tuesday, President Donald Trump unveiled a deal for Kodak, which now makes print and advanced materials and chemicals, to produce ingredients for drugs to treat the coronavirus.
“Our 33rd use of the Defense Production Act will mobilize Kodak to make generic, active pharmaceutical ingredients,” Trump said at a news conference cited by CNBC.
“We will bring back our jobs and we will make America the world’s premier medical manufacturer and supplier.”
Earlier Tuesday, The Wall Street Journal reported that the U.S. International Development Finance Corp. is lending $765 million to Kodak under the Defense Production Act and hopes to curb U.S. dependence on drugs made overseas.
With that loan, Kodak will make ingredients for generic drugs, including the anti-malarial drug hydroxychloroquine. That's the drug Trump touts - and took - as treatment for the coronavirus. (The Food and Drug Administration in mid-June revoked its emergency-use authorization for the drug to treat coronavirus.)
The Trump administration said the Kodak deal is the first of its kind.
Kodak said Tuesday it will make ingredients for essential drugs for which the FDA says are in short supply nationally.
The government wants to wean the country off dependence on China and India, Kodak Chief Executive Jim Continenza and U.S. officials told the Journal.
Activity in Kodak stock has been so volatile Wednesday morning that trading has been halted three times.