DOW JONES NEWSWIRES
K-V Pharmaceutical Co. (KVA, KVB) has reached a $20 million loan
agreement in the wake of a recent U.S. Food and Drug Administration
approval as the struggling specialty-drug company seeks to recover
from regulatory and compliance issues.
Class A shares were up 3.5% at $2.47 in recent trading. The
stock has dropped 33% this year.
K-V had stopped manufacturing and shipping all of its products
in early 2009 and recalled most already on the market as it dealt
with an FDA investigation into compliance matters and management
misconduct, among other issues.
But the company said last week it received FDA permission to
return potassium supplement Micro-K to market following successful
inspection of its facilities. It hadn't expected to be able to ship
any product before the fourth quarter.
The loan agreement, which expires Jan. 31, 2011, calls for a
16.5% annual interest rate. K-V also has agreed to an exclusive
two-week negotiating period with the lender over an expanded,
longer-term financing pact. The party was identified in a Tuesday
statement from K-V as U.S. Healthcare I LLC and U.S. Healthcare II
LLC.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240;
matthew.jarzemsky@dowjones.com