Eastman Kodak (NYSE:KODK) is in the news Tuesday as plans to shift its business have KODK stock taking off.
Eastman Kodak is reportedly planning to dip its toes into drug production. It’s getting a $765 million loan from the U.S. government that will allow it to make this change. The company will have 25 years to pay back the loan.
According to the news reports, this shift won’t have Eastman Kodak moving completely away from its normal photography business. However, it will result in roughly 30% to 40% of its business to change to drug production.
So what exactly will Eastman Kodak focus on in the drug department? The company is evidently going to make ingredients that will be used in hydroxychloroquine. This is a controversial treatment for the novel coronavirus that President Donald Trump has been in favor of using, reports TheStreet.com.
News that Eastman Kodak is moving into the drug production business has brought additional interest in KODK stock. As of this writing, more than 231 million shares of the stock have changed hands. That’s massive movement compared to the average trading volume of roughly 310,000 shares.
While KODK investors are boosting the stock higher, not everyone is happy about the Eastman Kodak news. TheStreet.com’s Jim Cramer had the following to say about the company’s change.
“This hydroxychloroquine—it’s never going to stop! Over and over, there were tests that were done that found it not valuable.”
KODK stock was up 227.8% as of Tuesday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.