This is somewhat related to earlier posts today with expenses and investments that can have issues. This company has a couple pending issues to clear and has taken action that no company wants to face with both the SEC and FDA investigating, thus there may not be much hope of a return for a while for investors, who are in it usually for the long run, but how long are the long runs becoming today. Again, not to single the company out as others have issues too, but just an example of how difficult and expensive things are today in bringing a new product to market and the downsides of anything that can occur along the way, one reason why investment prospects are tight today. BD
More bad news for the embattled KV Pharmaceuticals. The Missouri-based company announced today that it has voluntarily suspended all manufacturing and shipping operations, as well as issued a recall for most of its products. According to its latest SEC filing, the company will continue to distribute products manufactured by other companies. KV Pharma is currently being investigated by the FDA and the SEC. The company is also facing mounting lawsuits from shareholders, former employees and patients. The company said it has enlisted a third-party consulting group to review its manufacturing and packaging processes and created a special committee to deal with the mounting lawsuits and respond to SEC inquiries.
“The new leadership team at KV realizes that we are in a very challenging time for the company," said interim President and CEO David Van Vliet said in a statement. "We are committed, however, to resolving these issues and resuming production as soon as possible by working closely with the FDA and the independent experts from Lachman Consultant Services."