Mon September 16, 2013
KV Emerges From Bankruptcy
KV Pharmaceutical Company announced Monday that its reorganization plan is in effect, and it has emerged from bankruptcy.
Based in Bridgeton, the company filed for bankruptcy Aug. 4, 2012.
KV is primarily focused on women’s healthcare, but the company has had struggles in recent years.
That includes a failed lawsuit against the FDA, which refused to prevent competitors from selling a much lower cost version of Makena.
KV initially charged as much as $1,500 for a dose of Makena, which is meant to reduce the risk of premature births.
The high cost was condemned by many health care providers and the March of Dimes.
In a statement Monday, KV officials said that the company has significantly reduced its debt and has a $375 million recapitalization.
The majority of the funding was provided by investors led by Capital Ventures International, Greywolf Capital, Kingdon Capital and Deutsche Bank.
That includes a $100 million credit facility and another $275 million in rights offering and direct purchase of new common shares.
CEO Greg Divis said in a statement that KV is emerging "stronger, better capitalized, and more competitive."
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