Eastman Kodak Company will expand operations with the launch of Kodak Pharmaceuticals, a new arm of the company that will produce critical pharmaceutical components, at its manufacturing plants in Rochester, New York and St. Paul, Minnesota.
The company plans to utilize a U.S. International Development Finance Corporation $765 million loan to offset production costs. The project will mark the first collaborative effort between DFC and the U.S. Department of Defense in support of the domestic response to COVID-19 under the Defense Production Act, delegated by President Donald Trump’s recent executive order.
Kodak explained it is expanding its traditional product line to support the national response to COVID-19 by bolstering domestic production and supply chains of key strategic resources. Kodak Pharmaceuticals will produce critical pharmaceutical components that have been identified as essential but have lapsed into chronic national shortage, as defined by the Food and Drug Administration.
Although Americans consume approximately 40 percent of the world’s supply of bulk components used to produce generic pharmaceutics, only 10 percent of these materials are manufactured in the United States.
DFC’s loan will accelerate Kodak’s time to market by supporting startup costs needed to repurpose and expand the company’s existing facilities in Rochester, New York and St. Paul, Minnesota, including by incorporating continuous manufacturing and advanced technology capabilities.
Once fully operational, Kodak Pharmaceuticals said it will have the capacity to produce up to 25 percent of active pharmaceutical ingredients used in non-biologic, non-antibacterial, generic pharmaceuticals while supporting 360 direct jobs and an additional 1,200 indirectly. The company plans to coordinate closely with the Administration and pharmaceutical manufacturers to identify and prioritize components that are most critical to the American people and U.S. national security.
“Kodak is proud to be a part of strengthening America’s self-sufficiency in producing the key pharmaceutical ingredients we need to keep our citizens safe,” said Kodak Executive Chairman Jim Continenza. “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.”
"Addressing the unprecedented challenges we face today, and preparing for future crises, requires innovative ideas and partnerships,” said DFC CEO Adam Boehler. “Today, we are bringing together the significant resources and expertise of the private sector and U.S. Government. We are pleased to support Kodak in this bold new venture. Our collaboration with this iconic American company will promote health and safety at home and around the world.”
“If we have learned anything from the global pandemic, it is that Americans are dangerously dependent on foreign supply chains for their essential medicines,” said Assistant to the President and Director of the Office of Trade and Manufacturing Policy at the White House Dr. Peter Navarro. “This DFC-Kodak partnership is a big win for the use of President Trump’s DPA powers, a big win for New York and a huge step forward towards American pharmaceutical independence.”
"This is about ensuring our supply chains now and in the future,” said Rear Admiral John Polowczyk, White House Supply Chain Task Force Lead. “Kodak is stepping up to help onshore pharmaceutical production and this DPA action will allow the modernized Strategic National Stockpile to have domestic resiliency. Once Kodak ramps up we will have the ability to tap into that capacity for domestic use."