Kodak, the photography company that invented the digital camera, and the U.S. International Development Finance Corp., signed an interest letter in July for the $765 million loan that would help the company move into drug development.
The loan, made under the Defense Production Act, would also help Kodak pay for factory changes to make pharmaceutical ingredients in short supply in the U.S.
But the U.S. International Development Finance Corp. said the loan will be paused until allegations of insider trading are cleared.
“Recent allegations of wrongdoing raise serious concerns. We will not proceed any further unless these allegations are cleared,” the agency tweeted last week.
Filings with the SEC show that Kodak’s executive chairman and a Kodak board member loaded up on shares shortly before the government deal was announced, according to CNBC.
Shares of the company plunged more than 42 percent Aug. 10 after news of the insider trading allegations surfaced, according to CNBC.
More articles on pharmacy:
Most physicians think antibiotic overprescription is still an issue, study finds
AbbVie OKs $24M lawsuit settlement, accused of using nurses to boost Humira
Gates Foundation, world’s largest vaccine maker to make low-cost COVID-19 vaccine
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.