Photography giant Kodak carves out new business unit for manufacturing drugs, shares sky-rocket 2,441%

By: |
Updated: Jul 30, 2020 8:40 AM

Shares of Eastman Kodak Co. have leapt 2,441% higher this week, sending its market valuation to nearly $2 billion.

Kodak shares tripled on Tuesday on news of a $765 million loan to shift part of its factories to produce drug ingredients.

By Courtney Dentch

Shares of Eastman Kodak Co. have leapt 2,441% higher this week, sending its market valuation to nearly $2 billion, after it won a government loan to help produce ingredients used in key generic medicines to fight the coronavirus.

Kodak, the storied photography giant whose business and shares were devastated by the switch to filmless cameras, gained as much as 655% on Wednesday, triggering at least six halts for volatility along the way. More than 110 million shares traded hands, more than 23 times its typical volume. The company’s value climbed to $1.99 billion as of 10:25 a.m. in New York, after closing on Friday shy of $100 million.

Kodak shares tripled on Tuesday on news of a $765 million loan to shift part of its factories to produce drug ingredients. The development bank loan was the first of its kind under the Defense Production Act in collaboration with the U.S. Department of Defense, and intended to speed production of drugs in short supply and those considered critical to treat Covid-19, including hydroxychloroquine, the controversial antimalarial drug touted by President Donald Trump.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Shining amid gloom: Apple on cusp of becoming first US company to boast market value of $2 trillion
2Adani Electricity Mumbai sells shares worth Rs 202 crore in Yes bank
3Sebi slaps Rs 80 lakh fine on six individuals