KV shares tumble on bleak SEC filing
KV Pharmaceutical Co. shares tumbled almost 39 percent Monday after the troubled drugmaker filed a report with regulators outlining financial difficulties and reiterating concerns about the company’s future.
Its stock closed at $1.99, down $1.27 on the New York Stock Exchange.
Brentwood-based KV, which made both branded and generic pharmaceuticals, stopped all production in January following a number of recalls last year because of manufacturing problems. It has agreed to a court order that bars it from resuming production until it meets FDA standards.
On Friday it filed a report with the Securities and Exchange Commission stating that it does not expect to generate material revenue until it can start shipping products again. The soonest shipments might resume is this year’s fourth quarter.
KV’s cash position as of June 30, 2009, was $78.9 million, down from $135.1 million in June 30, 2008, as it faces a hoard of expenses that include costs from the FDA and other government investigations as well as private personal injury and securities litigation payday loan no fax no credit check. In order to cut costs, it has slashed its work force to 700, down from 1,700, the filing said.
Because of a board committee internal investigation, KV has been unable to file its results for the 2009 fiscal year, ended March 31, with the SEC. It reiterated Friday that there are significant uncertainties regarding its ability to continue as a going concern during the coming fiscal year. It expects its accounting firm KPMG LLP will highlight this doubt when the financial results are filed.
The investigation was completed last month and found problems in the conduct of certain members of senior management, KV’s financial analysis controls, employment policies and noncompliance with health care regulations.
Filed under: business by Fred