BUFFALO, N.Y. (WKBW) — The U.S. International Development Finance Corporation says a deal Eastman Kodak landed to bolster US-produced drug supply is now on hold due to "recent allegations of wrongdoing."
It was announced July 28 that Kodak would receive a $765 million federal loan to aid the U.S. in reducing its reliance on other countries for ingredients used in generic drugs.
“We must never be reliant on a foreign nation for America’s medical or other needs,” President Donald Trump said at the White House.
Kodak's stock price surged prior to the announcement being made, which led to questions of the possibility of insider trading.
The Wall Street Journal is reporting the SEC has opened a probe.
In a tweet Friday, the DFC released a statement saying in part that it will not proceed further until the allegations of wrongdoing are cleared.
On July 28, we signed a Letter of Interest with Eastman Kodak. Recent allegations of wrongdoing raise serious concerns. We will not proceed any further unless these allegations are cleared.
— DFCgov (@DFCgov) August 7, 2020
Peter Navarro, director of the Office of Trade and Manufacturing Policy, released the following statement:
VERY disappointed last week’s great deal with Kodak tarnished by allegations. Absolutely RIGHT move by DFC!
— Peter Navarro (@PeterNavarro45) August 7, 2020
We must redouble efforts to bring our pharma manufacturing home!! #BuyAmerican https://t.co/2OfAjJFHKH
WKBW reached out to Kodak for a statement, a spokesperson declined to comment.
