sold its generic drug unit ;
KV Pharmaceutical wraps $60 million generics unit sale to Zydus
St. Louis Business Journal
Date: Monday, August 8, 2011, 5:36pm CDT
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Manufacturing, Health Care
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KV Pharmaceutical wraps $60 million generics unit sale to Zydus
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KV Pharmaceutical Co. KV Pharmaceutical Co. Latest from The Business Journals KV to sell generics unit to Zydus for MKV loss narrows in fiscal ‘11KV, Savvis stocks lead first-quarter rebound Follow this company said Monday it completed the $60 million sale of its generic drug unit, Nesher Pharmaceuticals, to Zydus Pharmaceuticals Inc. and Zynesher Pharmaceuticals.
The deal was first announced in June.
The sale includes manufacturing, packaging and laboratory facilities, intellectual property, existing and future product opportunities, as well as equipment.
Zydus is a unit of India-based drug maker Cadila Healthcare. The deal lets Cadila’s Zydus manufacture and distribute generic controlled substances in the U.S. Nesher reportedly has eight filings with federal drug regulators and five products under development.
“The net proceeds from the transaction will strengthen our financial position and liquidity, while exiting the generics business will immediately reduce our quarterly cash outlays,” KV CEO Greg Divis said. “Moving forward, we will continue working towards making important progress with Makena (the company’s anti-preterm labor drug), returning our branded anti-infective products back to market and supporting additional growth potential for Evamist (hot flash treatment).”
Bridgeton-based KV said the sale of its generic unit has been an “important goal” of the company’s board and management, and in keeping with its strategy of becoming a branded specialty pharmaceutical company focused on women’s health.
The company’s switch in strategy came after KV agreed in February 2010 to pay $27.6 million in fines and restitution to resolve a federal investigation into the company, which halted production and recalled drugs in 2008 after making oversized painkiller tablets. KV ceased operations of Ethex Corp. Ethex Corp. Latest from The Business Journals KV to sell generics unit to Zydus for MKV loss narrows in fiscal ‘11KV Pharmaceutical to sell M in shares Follow this company , its old generic/nonbranded pharmaceutical operations, in March 2010 and dissolved Ethex in December 2010.
KV then formed Nesher last year to operate as the sales and marketing company for KV’s generic products.
KV also said Monday it has entered into a supply agreement with Zydus to provide third-party manufacturing services for Clindesse and Gynazole-1, which are vaginal creams.
For fiscal 2011 ended March 31, KV Pharmaceutical (NYSE: KV-a, KV-b) reported a loss of $174 million on revenue of $27.3 million.
