After halting drug production and shipments and recalling painkillers, KV Pharmaceutical Co. expects to report a loss for the fiscal year that ended March 31, according to a regulatory filing Tuesday.
The Brentwood, Mo.-based pharmaceutical company anticipates the costs related to the production stoppage and recalls will hurt fiscal year results by $140 million to $150 million, according to a filing with the U.S. Securities and Exchange Commission.
Due to an internal investigation into management misconduct, KV has delayed the filing of its annual report and expects matters to be resolved by the end of July,according to Tuesday’s filing.
Late last year, KV suspended drug shipments, halted production and recalled drugs following problems with manufacturing, including the production of oversized tablets.
In March, KV said it entered into a consent decree with the FDA that outlines a series of measures that will permit KV and its subsidiaries to resume manufacturing and distribution.
The consent decree requires KV to hire an independent expert to review the company’s facilities and certify compliance with the FDA.
“The requirements under the consent decree have had a material adverse effect on the company’s results of operations and liquidity position,” according to the filing. “The company is exposed to significant costs as a result of the multi-product recall, the costs associated with the disposal of company inventory and potential claims certain customers may assert …”
On Monday night, a fire ripped through a KV Pharmaceutical building in Brentwood
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