President Trump announced in a presser yesterday that he worked out a deal with Kodak and the Democrat Governor Cuomo to have Eastman Kodak Co. develop some generic drugs here in New York. It will take business from China.
They will do it with a $765 million loan.
He is bringing jobs back to the United States and taking them out of China’s hands.
Kodak’s stock (KODK) rallied more than 200% on Tuesday after the news was announced by the Trump administration. The company emerged from a 2011 bankruptcy in 2013, and its shares tumbled from a 10-year high of $37.20 on Jan. 9, 2014, to a low of $1.55 on March 23 of this year.
“Never again do we want to rely on shipments from China or elsewhere in order to get lifesaving medical supplies,” New York Gov. Andrew Cuomo said in a statement.
Kodak, which is based in Rochester, N.Y., and has a long history of manufacturing chemicals used in photographic film, now plans to support “America’s self-sufficiency in producing the key pharmaceutical ingredients we need to keep our citizens safe,” Kodak’s executive chairman, Jim Continenza, said in a statement.
The Trump administration said the Kodak deal is the first of its kind and uses powers afforded by the Defense Production Act. The administration previously used these powers to demand that Ford Motor Co. (F) begin manufacturing respirators and masks and that General Motors Co. (GM) make ventilators.
It also awarded $354 million to Phlow Corp. in May to start producing active pharmaceutical ingredients, or API, among other chemical ingredients, used in certain essential medications.
Having insulin, antibiotics, and other vital drugs only handled by China is a serious problem and the President is addressing that. The fact that President Trump got this done with a Democrat governor who doesn’t like him is quite an accomplishment.
Biden has long been an apologist and ally of China’s.
It’s another promise being fulfilled.