K-V Pharmaceutical Files for Bankruptcy

K-V- Pharmaceutical is a Bridgeton-Missouri based company that specializes in woman’s healthcare products. Unfortunately, the company had to file for bankruptcy protection because of a financial mistake that rendered them helpless to meet the debts that kept piling on top of the company. According to Reuters, the K-V had been working on a drug which would help to prevent premature births. They had put most of their confidence into this drug, assuming that it would bring in the revenue that they needed to keep afloat. The company says that federal action limited them from getting the full value of the drug, and this created the debts that put them in the poorhouse.

K-V has been around since 1942, but the decades of work have not boosted their potential for success. In their filing, K-V listed $728.3 million in liabilities and $236.6 in assets. They filed in New York City. The company says that its bankruptcy is due to their inability to realize the full value of Makena. The drug Makena is supposedly a solution to avoid premature births. The FDA refused to enforce the drug marketing company exclusivity for the drug, which means that the company did not have a copyright on the medication. The business also says that they were damaged due to restrictions on reimbursements which were imposed by some state Medicaid agencies.

In addition to all the above, K-V says that they were restricted from manufacturing and marketing many of their other products because of a 2009 consent decree with the Department of Justice. This is because of a recall that was issued in 2009 because some of K-V’s pills were oversized. In 2010, K-V plead guilty to failing to alert drug authorities about pill manufacturing problems, and they were forced to pay a criminal fine of $23.4 million. The CEO of the company palter plead guilty to violating drug labeling statutes. All of the criminal activity has posed problems for K-V, and they will now need to determine whether or not they can repay their surmounting debts and get back on track.