The US International Development Finance Corporation (DFC) has agreed to provide a $765m loan to Eastman Kodak Company to help create a new pharmaceutical business unit.
The US technology company signed a letter of interest (LOI) with the DFC to secure a loan to establish Kodak Pharmaceuticals, a new business unit that will engage in the production of critical pharmaceutical components.
The project is based on the US President Donald Trump’s recent executive order, which facilitated DFC and the US Department of Defense (DOD) to work together to improve domestic efforts on the Covid-19 pandemic under the Defense Production Act (DPA).
The DFC CEO Adam Boehler said: “Addressing the unprecedented challenges we face today – and preparing for future crises – requires innovative ideas and partnerships.
“Today, we are bringing together the significant resources and expertise of the private sector and the US Government.”
Kodak Pharmaceuticals will manufacture critical pharmaceutical components, which were identified as essential and lapsed into chronic national shortage, as defined by the US the Food and Drug Administration (FDA).
DFC’s loan will allow Kodak to meet its startup costs required to repurpose and expand the firm’s existing facilities in Rochester of New York and St. Paul of Minnesota. The funding will also help to improve continuous manufacturing and advanced technology capabilities at the facilities.
Upon fully-operational, Kodak Pharmaceuticals will hold the capacity to manufacture up to 25% of active pharmaceutical ingredients used in non-biologic, non-antibacterial, generic pharmaceuticals.
The project will create 360 direct jobs as well as 1,200 indirect jobs.
Kodak executive chairman Jim Continenza said: “By leveraging our vast infrastructure, deep expertise in chemicals manufacturing, and heritage of innovation and quality, Kodak will play a critical role in the return of a reliable American pharmaceutical supply chain.”
In January this year, Eli Lilly announced the investment of more than $470m to build a new pharmaceutical manufacturing facility in North Carolina, US.