Kodak Turns to Pharmaceuticals: What’s Behind This Decision?
Kodak was king when it came to cameras and movies. In 1976, Kodak had a virtual monopoly on the U.S. photography market, accounting for 90% of film sales and 85% of camera sales, according to The Economist.
But the switch to digital photography in the early 2000s hit the company hard. Ironically, Kodak actually invented the first digital camera in 1975, but at the time, film was the company’s golden egg and executives were reluctant to change. In 2012, Kodak filed for Chapter 11 bankruptcy.
Kodak emerged from bankruptcy in September 2013 as a much leaner company, primarily focused on high-speed digital printing technology and flexible packaging for consumer goods. After a short stint in the phone and tablet business, Kodak raised eyebrows in 2018 after ad its foray into cryptocurrency.
But none of these companies seemed to hold up. Now, as the coronavirus sweeps the world, Kodak has another opportunity to revive its business in the form of a $ 765 million government loan to produce generic pharmaceutical ingredients. But the loan, which is still only a letter of interest, has been put on hold while the SEC investigates the circumstances surrounding the Kodak disclosures. Watch the video above to learn more about why Kodak is turning to pharmaceuticals.