ST LOUIS – KV Pharmaceutical Co. filed for Chapter 11 bankruptcy with a New York district court over the weekend, marking a new chapter in a recent history of regulatory and financial woes for the company.
The St. Louis-based drug maker was once among the city’s strongest publicly traded companies, according to the St. Louis Post-Dispatch.
In a press release, KV said its recent bankruptcy filings are largely the result of issues related to Makena, a drug meant to reduce the risk of premature birth. Public furor erupted last year after KV priced Makena at $1500 per shot.
The FDA ultimately refused to grant KV exclusive rights to the drug, which KV said left the company “unable to realize the full value” of its most important drug.
KV initially bought the rights to Makena from another company, Hologic Inc.. After the FDA’s decision, as well as a public outcry over Makana’s pricing, KV dropped its price for the drug by more than half.
KV now says the pricing problems with Makena led to the company’s recent bankruptcy filing by making it harder for KV to pay back the debt it racked up in buying the rights for Makena.
KV said it will continue to operate and pay its employees and vendors during bankruptcy as it restructures its business and finances.