An agreement between the US government and Kodak to develop generic drug ingredients appears to be on hold. The US International Development Finance Corporation tweeted that’recent allegations of wrongdoing raise serious concerns’.

‘we will not proceed any further unless these allegations are cleared,’ the agency tweeted. The agency posted a statement without specifying what the allegations were.

Kodak said Friday it was conducting an internal review of recent activity by the company in connection with a $ 765 million loan it would receive under the defense production act. The company’s stock price surged in the days before the deal was announced. Sen. Elizabeth Warren called for the Securities and Exchange Commission to investigate whether there were any instances of insider trading.

We signed a letter of interest with Eastman Kodak on July 28. Recent allegations of wrongdoing raise serious concerns. We will not proceed any further unless these allegations are cleared.

Kodak CEO Jim continenza said he expected pharmaceuticals to become 30 to 40 percent of the company’s business. President Trump has touted hydroxychloroquine as a possible treatment for covid-19.

Rep. Maxine waters, chair of the House Financial Services Committee and other Democrats sent a letter to DFC head Adam Boehler August 4th. The agency was on the brink of failure in 2012 and was unsuccessful in its attempts to develop the capacity to produce up to 25 percent of domestic pharmaceutical components.