Kodak deal with US government to produce pharmaceuticals appears to be on hold

Kodak deal with US government to produce pharmaceuticals appears to

An settlement between the US authorities and Kodak to develop generic drug components seems to be on maintain, after the US International Development Finance Corporation tweeted that “recent allegations of wrongdoing raise serious concerns.”

“We will not proceed any further unless these allegations are cleared,” the company tweeted, with out specifying what the allegations had been.

Kodak mentioned Friday it was conducting an internal review of recent activity by the corporate in reference to a $765 million mortgage it could obtain below the Defense Production Act to provide prescribed drugs. The firm’s inventory worth surged within the days earlier than the deal was introduced, CBS News reported, main Sen. Elizabeth Warren (D-MA) to name for the Securities and Exchange Commission to investigate whether or not there have been any cases of insider buying and selling.

Kodak, greatest recognized for its digital camera and movie gear, mentioned it deliberate to create a new business arm called Kodak Pharmaceuticals to make components which have “lapsed into chronic national shortage.” Kodak CEO Jim Continenza told The Wall Street Journal that he anticipated prescribed drugs to grow to be 30 to 40 % of the corporate’s enterprise. The firm’s plans included manufacturing of components for medicine akin to hydroxychloroquine, according to The Wall Street Journal. President Trump has touted hydroxychloroquine as a doable therapy for COVID-19, regardless of proof that the anti-malaria drug has been ineffective in opposition to the virus.

Rep. Maxine Waters (D-CA), chair of the House Financial Services Committee and different Democrats despatched a letter to DFC head Adam Boehler August 4th asking why the company was supporting a mortgage for Kodak, “an organization that was on the brink of failure in 2012 and was unsuccessful in its previous foray into pharmaceutical manufacturing, in its efforts to develop the capacity to produce up to 25 percent of domestic pharmaceutical components.” The committee is asking to see all communications regarding the mortgage.

A Kodak spokesperson declined to remark Saturday.

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