Troubled KV cuts 700 jobs amid suspension
KV Pharmaceutical Company said it is eliminating 700 jobs as part of a cost-cutting program following a suspension of manufacturing and product recalls resulting from an FDA investigation.
The St. Louis-based specialty drug maker did not specify where cuts might fall, but said they would come in a combination of terminations and layoffs, and KV expects to recall some employees when production and shipment of its products resumes.
KV, which manufactures branded drugs under the Ther-Rx name and generics through its Ethex line, suspended manufacturing and shipping and recalled all products it manufactures late last month, and said that the financial impact could jeopardize a $30 million line of credit.
In July, FDA and the US Marshals Service seized $24.2 million worth of unapproved new drugs from the company following an inspection of several plants by the agency, which found it in violation of an FDA enforcement notice and manufacturing unapproved new drugs including treatments for cough, cold, topical wounds, skin bleaching and gastrointestinal conditions, as well as narcotic drugs products.