EXHIBIT 99.1
KV PHARMACEUTICAL COMPANY
CONTACT:
CATHERINE M. BIFFIGNANI
VICE PRESIDENT, INVESTOR RELATIONS
314-645-6600
[KV PHARMACEUTICAL logo]
FOR IMMEDIATE RELEASE
KV PHARMACEUTICAL COMPANY COMPLETES FINANCIAL RESTATEMENT WITH THE FILING
OF FISCAL 2007 FORM 10-K
St. Louis, MO - March 25, 2008 - KV Pharmaceutical Company (NYSE: KVa/KVb), a
fully integrated specialty pharmaceutical company that develops, manufactures,
acquires and markets technology differentiated branded and generic/non-branded
prescription pharmaceutical products, announced the filing of its fiscal 2007
Form 10-K with the Securities and Exchange Commission.
The filing includes restatements of previously reported results for fiscal
years 1995 through 2006. In addition, the Company filed a Form 10-QA for the
quarter ended June 30, 2006 and Form 10-Q's for the quarters ended September
30, 2006 and December 31, 2006. These filings complete the Company's
previously announced restatement of financial results. The financial
statements for fiscal 2007 included in the Form 10-K filed with the Securities
and Exchange Commission are consistent with the previously reported unaudited
financial information which was detailed in a press release dated February 15,
2008.
The Company is currently in the process of completing its Form 10-Q's for the
fiscal quarters ended June 30, 2007, September 30, 2007 and December 31, 2007.
The filing of the fiscal 2007 10-K brings the Company into compliance with the
annual reporting conditions for continued trading on the New York Stock
Exchange. However, KV will remain on the NYSE late filer list until its fiscal
2008 quarterly filings are completed.
The Company's filings have been delayed due to the previously reported
investigation by a Special Committee of independent members of the Board of
Directors into the Company's former stock option grant practices. The
investigation concluded that no employee, officer or director of the Company
engaged in any intentional wrongdoing or was aware that the Company's policies
and procedures for granting and accounting for stock options were materially
non-compliant with U.S. Generally Accepted Accounting Principles. The
investigation also found no intentional violation of law or accounting rules
with respect to the Company's historical stock option granting practices.
ABOUT KV PHARMACEUTICAL COMPANY
KV Pharmaceutical Company is a fully integrated specialty pharmaceutical
company that develops, manufactures, markets and acquires
technology-distinguished branded and generic/non-branded prescription
pharmaceutical products. The Company markets its technology-distinguished
products through ETHEX Corporation, a national leader in pharmaceuticals that
compete with branded products, and Ther-Rx Corporation, its branded
prescription pharmaceutical subsidiary.
For further information about KV Pharmaceutical Company, please visit the
Company's corporate website at www.kvpharmaceutical.com.
SAFE HARBOR
The information in this release may contain various forward-looking statements
within the meaning of the United States Private Securities Litigation Reform
Act of 1995 ("PSLRA") and which may be based on or include assumptions
concerning KV's operations, future results and prospects. Such statements may
be identified by the use of words like "plans", "expects", "aims", "believes",
"projects", "anticipates", "commits", "intends", "estimate", "will", "should",
"could" and other expressions that indicate future events and trends.
All statements that address expectations or projections about the future,
including without limitation, statements about the Company's strategy for
growth, product development, product launches, regulatory approvals, market
position, market share increases, acquisitions, revenues, expenditures and
other financial results, are forward-looking statements.
All forward-looking statements are based on current expectations and are
subject to risk and uncertainties. In connection with the "safe harbor"
provisions, KV provides the following cautionary statements identifying
important economic, political and technology factors, which among others,
could cause actual results or events to differ materially from those set forth
or implied by the forward-looking statements and related assumptions.
Such factors include (but are not limited to) the following: (1) changes in
the current and future business environment, including interest rates and
capital and consumer spending; (2) the difficulty of predicting FDA approvals,
including timing, and that any period of exclusivity may not be realized; (3)
acceptance and demand for new pharmaceutical products; (4) the impact of
competitive products and pricing, including as a result of so-called
authorized-generic drugs; (5) new product development and launch, including
the possibility that any product launch may be delayed or that product
acceptance may be less than anticipated; (6) reliance on key strategic
alliances; (7) the availability of raw materials and/or products manufactured
for the Company under contract manufacturing arrangements with third parties;
(8) the regulatory environment, including regulatory agency and judicial
actions and changes in applicable law or regulations; (9) fluctuations in
revenues; (10) the difficulty of predicting international regulatory approval,
including timing; (11) the difficulty of predicting the pattern of inventory
movements by the Company's customers; (12) the impact of competitive response
to the Company's sales, marketing and strategic efforts; (13) risks that the
Company may not ultimately prevail in litigation; (14) the completion of the
Company's financial statements for the first, second and third quarters of
fiscal 2008; (15) actions by the Securities and Exchange Commission and the
Internal Revenue Service with respect to the Company's stock option grants and
accounting practices; (16) the risks detailed from time to time in the
Company's filings with the Securities and Exchange Commission; and (17) the
impact of credit market disruptions on the fair value of auction rate
securities that we have acquired as short-term investments.
This discussion is by no means exhaustive, but is designed to highlight
important factors that may impact the Company's outlook. We are under no
obligation to update any of the forward-looking statements after the date of
this release.