Monday, October 29, 2012

K-V Pharmaceutical Seeks Extension to File Chapter 11 Plan

By Joseph Checkler 
K-V Pharmaceutical Co. (KVPBQ) wants to extend the amount of time it can control its own bankruptcy case without the threat of rival proposals, as the company continues trying to sort out issues regarding its flagship premature birth drug, Makena.
In a Friday filing with the U.S. Bankruptcy Court in Manhattan, K-V said it wants until March 4, to file a plan of reorganization without the threat of competing proposals and until May 2, to solicit votes on that plan. Without court approval, the company's right to file the plan and seek the votes would expire on Dec. 3 and Jan. 31, respectively.
"The purpose of the Debtors' present request for an extension of the Exclusive Periods is, among other things, to ensure that the Debtors have an opportunity to seek to address the concerns of all stakeholders," K-V said in its filing.
K-V's bankruptcy, like its business before it filed for Chapter 11, centers on the success of Makena. K-V bought the rights to Makena from Hologic Inc. (HOLX) in a deal that closed last year. Hologic, which K-V still owes money tied to Makena, is trying to get the rights to the drug back. It claims that K-V has made missteps that have sapped value out of the drug.
When Makena hit the market, K-V sold it for $1,500 per shot, a price that set off protests from detractors who said the drug was too costly. The Food and Drug Administration then decided not to take action against "compounder" companies making cheaper drugs using the same active ingredient as Makena, which hurt the drug's sales. K-V eventually lowered the price.
Although the FDA clarified its statement about Makena in June, the company thought it didn't go far enough and sued. A judge threw out the initial lawsuit, though K-V could appeal.
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