KV Pharmaceutical Eyes Scaling Back Operations to Reduce Costs
Published: Dec 14, 2011
Here is a disclosure that, while disturbing to KV Pharma investors and employees, may hearten those who charged the drugmaker with price gouging for its Makena med for premature births. After winning FDA approval under the Orphan Drug Act, KV Pharma began charging $1,500 for a form of progesterone that had been sold for decades by compounding pharmacies for $10 to $20 a week. The price was lowered to $690 per injection after the fracas (see this). Now, though, KV Pharma may be on the ropes. In a filing with the US Securities and Exchange Commission, the drugmaker discloses that various “conditions raise substantial doubt about the company’s ability to continue as a going concern.” The list is long, but includes a need to generate more revenue from Makena.