Good Question: Does Kodak still plan to make drug ingredients?

ROCHESTER, (WHEC) — It was billed as a lifeline for a company that needed one. Little did we know about all the twists and turns in this saga to come.

The original announcement came out of nowhere in the summer of 2020. A massive deal was in the works with a $765 million dollar federal loan for Kodak to launch a new venture by making generic drug ingredients.

Then came all the questions over stock trades by the company’s CEO Jim Continenza while those discussions with Washington were ongoing.

Shares of the company sold at less than $3 the day before the loan announcement. They soared to $60 soon after.

The NY Attorney General Tish James started investigating and so did the feds looking into their own case over claims of insider trading.

The Trump White House backed off the failed deal.

The company has insisted everything done was on the up and up.

It has also said Kodak was moving forward with plans to make drug ingredients, regardless.

Marlene asked News10NBC’s Brennan Somers about it just recently: What happened with plans to turn a Kodak plant into one manufacturing pharmaceutical products? With the current political situation, we shouldn’t be forced to depend on India or China or any other country for critical medical products.

Somers sent that GQ to the company and got this response: “Kodak is working to organically expand its key starting materials ("KSM") production at Eastman Business Park in Rochester, New York while exploring alternatives to obtain necessary Current Good Manufacturing Practices ("cGMP") and FDA certification to make regulated KSMs and active pharmaceutical ingredients ("APIs") and otherwise utilize its assets and technology in the healthcare space. Depending on its assessment of the business opportunity and availability of capital, Kodak may also explore alternative means to further expand its chemical manufacturing operations for purposes of producing materials to support the healthcare industry. A portion of the capital raised by the Company on February 26, 2021 is being used to fund these exploratory activities and may be used to fund expansion opportunities that the Company considers attractive.”

So that’s the business side. The legal issues still aren’t resolved.

The NY AG and her team have questioned the CEO now they have to decide on whether to sue.

We also have to see what comes out of the federal review with the Securities and Exchange Commission.