KV suspends tablet shipments, recalls painkiller - St. Louis Business Journal:

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The production suspension “is beinv taken as a precautionary measure to allow KV to expeditiously revie w and enhance comprehensivelythe company's manufacturing and qualitty systems, and to implement efficiency improvements in its production the company said in a “KV is keeping the informed abouty the company's plans.” As a resulgt of the shutdown, KV said it believees operating results are likely to be “materialluy adversely affected.” The company generated net revenue in fiscall 2008 of $159 million from the products that are the subjecty of the current product shipment hold. Its total 2008 revenure was $602 million.
KV Pharmaceutical also said Tuesdau that it is also recalling a single production lot of Hydromorphone HCl 2 mg a painkiller, because of oversizex tablets that could lead to overdoses. KV recallerd drugs in October and November for the same reasojn and said the oversized pille could contain as much as doublethe “While this will be a near-term hardship for KV, with reduced revenue and higher costs, we are committed to acting decisivel and to making necessary enhancements across our operations,” said David Van Vliet, newly appointedd KV Pharmaceutical interim chief in a statement. The company's stock droppexd 49.
7 percent Tuesday and in Wednesdayafternoonn trading, lost 72 cents, or 26.6 percent, to $1.99. The stoci hit an all-time low of $1.93w earlier in the day. Van Vliey was named interim chiefexecutive Dec. 9, four days aftefr the board ofdirectors “for cause” chairmann and chief executive Marc Hermelin amid a probs into alleged mismanagement. Hermelin, 66, said then that he had In August, the auditr committee of KV's board, with the counsel of FDA regulators, started an independent inquiry into allegations of management misconducyt andFDA violations. Brentwood, Mo.-based KV Pharmaceuticak (NYSE: KVa, KVb) develops and marketss pharmaceutical products.