Following manufacturing problems that caused KV to suspend operations, the company is laying off 700 employees as it tries to get back on its feet. The company previously employed almost 1,600 workers.
In late January, the Missouri-based company voluntarily suspended all manufacturing and shipping operations--and recalled most of its products--after it found itself under FDA and SEC investigation. KV ran afoul of FDA regulations in December when it was discovered that the company was producing oversized tablets of a pain medication hydromorphone HCI. Additionally, several shareholder groups have filed suit against the company alleging that it misled shareholders about KV's compliance with federal regulations, as well as the company's performance, operations and outlook.
According to the statement, the reductions--which are a combination of layoffs and terminations--are part of an overall cost-cutting that the company has employed as it works toward resuming full operation. Some workers may be called back after its issues are resolved. KV said the company is working with Lachman Consulting to fix its manufacturing problems.
"KV Pharmaceutical plans to emerge from these challenges on a solid foundation of a smaller, more focused organization and the return to providing excellent products to our customers," said David Van Vliet, interim President and CEO. "The need to reduce our employee base is regrettable and one of the most difficult parts of our program to resume manufacturing and shipping product."
- check out KV's release