Kodak pharmaceutical manufacturer
Chris Furlong/Getty Images

Kodak, once famed in the photography industry, has decided to create a pharmaceutical arm to produce ingredients needed in drug manufacturing.

President Donald Trump on Tuesday said the government would give the company a $765 million loan to help it transform into a pharmaceutical manufacturer.

The president noted that it is a breakthrough to bring pharmaceutical manufacturing back to the United States.

"Kodak will now produce generic, active pharmaceutical ingredients. This is a big deal. Using advanced manufacturing techniques, Kodak will also make the key starting materials that are the building blocks for many drugs in a cost-competitive and environmentally safe manner," Trump was quoted in a report.

The $765 million loan is being made available under the Korean War-er Defense Production Act. The Trump administration has recently used this to speed up the production of ventilators, masks, and other medical equipment needed to fight COVID-19.

The government aims to decrease its dependency on foreign countries for medical supplies. Kodak CEO Jim Continenza said pharmaceuticals would eventually make up 30 to 40 percent of Kodak's business. Kodak stock shares closed up more than 200 percent on Tuesday.

The soon-to-be pharmaceutical manufacturer said its headquarters would be at Eastman Business Park in Rochester, New York. It added that the loan would create at least 360 jobs, while supporting around 1,200 indirect jobs.

Continenza said that Kodak is proud to strengthen America's self-sufficiency in producing the needed pharmaceutical ingredients. He added that it would take three or four years to reach large-scale production after the launch of Kodak Pharmaceuticals.

Peter Navarro, a White House spokesman, said Americans are dangerously dependent on foreign supply chains to create the most needed medicines.

Trump said that this one of the most important deals in the history of U.S. pharmaceutical industries.

The President noted that Kodak is a "great American company - you remember this company."

The Trump administration also said that Kodak would eventually produce 25 percent of America's pharmaceutical needs.

Kodak is not the only one to enter the pharmaceutical industry. Japan's Fujifilm is working on a possible coronavirus vaccine 2019 (COVID-19) vaccine and hopes to start human trials soon.

Kodak As an Imaging Giant

In 1888, George Eastman founded Kodak and introduced its Brownie box, which became one of its most popular cameras and helped Kodak become popular in the photographic industry.

The company has its famous tagline, "Kodak moment." But it started struggling in the late 1990s as more customers are leaning more towards digital photography.

Kodak used to employ over 145,000 people but has a workforce of 5,000 worldwide now. Kodak filed for bankruptcy in 2011 and shifted to printing and professional services for companies. It continued to make digital and instant cameras for consumers.

Kodak In The Drug-Making Industry

Kodak first entered the pharmaceutical industry in 1988 when the company created "a new health-care business with the establishment of its Eastman Pharmaceuticals Division." It also bought the Sterline Drug in 1988.

"Kodak acquired Sterling Drug Inc., providing the infrastructure and marketing ability Kodak needed to participate in markets for ethical/prescription and over-the-counter drugs," it was quoted in a report.

Kodak started making drug ingredients four years ago and will expand its drug manufacturing arm at its New York and Minnesota facilities.

Check these out:

Kodak's Ektra Smartphone - Specs, Price and Release Date

Kodak Smartphone Release Rumors: Company to Reveal Android Smartphone at CES 2015

Kodak Bankruptcy Plan Approved: Reorganization Begins After 19-Month Wait