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Kodak said it was creating a new pharmaceuticals division and will expand its facilities options million Rochester, N.

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Paul, Minn. The division will eventually have the capacity to produce as much as 25 percent of the active ingredients used in generic drugs in the United States.

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Continenza said in a TV interview this week. Kodak will coordinate with the federal government and other manufacturers to figure out which ingredients to make, prioritizing those that are deemed critical to Americans and national security.

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That activity raised suspicion about improper trading ahead of the market-moving news, but The Wall Street Journal reported that it was apparently the result of reports by the media in Rochester, where Kodak is headquartered, about the pending announcement. Options million the time that Kodak began talking with the federal government this spring, Kodak insiders began receiving stock options.

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On May 20, Kodak handed outstock options to board members — an addition to its usual equity distribution in January. Those options are eligible to be exercised gradually over the course of this year.

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Arielle Patrick, a spokeswoman for Kodak, declined to answer questions about why the directors were granted stock options in May. Continenza 1.

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Continenza the right to buy shares at a deep discount. Continenza can exercise some but not all of the options immediately.

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Patrick said that the rapid increase options million the values of Mr. Continenza has not received any proceeds nor does he have any intention of selling.

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She declined to comment on why Kodak did not wait until after the White House announcement to grant the options. Continenza received when he became chief executive.

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