UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934
Date of Report (date of earliest event reported): June 26, 2012
K-V PHARMACEUTICAL COMPANY
(Exact name of registrant as specified in its charter)
Delaware | 1-9601 | 43-0618919 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) | ||
2280 Schuetz Road St. Louis, MO |
63146 | |||
(Address of principal executive offices) | (Zip Code) |
(314) 645-6600
(Registrants telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act. |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act. |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act. |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act. |
Item 3.01 | Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing. |
On June 26, 2012, K-V Pharmaceutical Company (the Company) was notified by the New York Stock Exchange (the NYSE) that the average closing share price of its Class A Common Stock was below the NYSEs continued listing standard for minimum average closing share price. Rule 802.01C of the NYSE Listed Company Manual requires that any security listed on the NYSE trade at a minimum average closing share price of $1.00 during any consecutive 30 trading-day period.
Under the applicable rules of the NYSE, the Company must notify the NYSE within 10 business days of receipt of the non-compliance notice that it intends to cure the deficiency. The Company intends to notify the NYSE within this time period that it intends to cure the deficiency. The Company has six months from its receipt of the non-compliance notice to cure the deficiency and regain compliance by having a closing price of at least $1.00 per share on the last trading day of any calendar month during the six-month cure period and an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of that month.
During the six-month cure period, the Companys Class A Common Stock and Class B Common Stock will continue to be listed and traded on the NYSE, subject to the Companys continued compliance with the NYSEs other applicable listing rules.
On June 29, 2012, the Company announced, through a press release, its receipt of the non-compliance notice and its intention to cure the deficiency. A copy of the press release is attached hereto as Exhibit 99.1.
Item 9.01 | Financial Statements and Exhibits. |
(d) | The following exhibit is furnished as part of this report: |
Exhibit |
Description | |
99.1 | Press Release dated June 29, 2012, issued by K-V Pharmaceutical Company. |
The Registrant will post this Form 8-K on its Internet website at www.kvpharmaceutical.com. References to the Registrants website address are included in this Form 8-K and the press release only as inactive textual references and the Registrant does not intend them to be active links to its website. Information contained on the Registrants website does not constitute part of this Form 8-K or the press release.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: July 3, 2012
K-V PHARMACEUTICAL COMPANY | ||
By: | /s/ Patrick J. Christmas | |
Patrick J. Christmas | ||
Vice President, General Counsel and Secretary |
Exhibit 99.1
FOR IMMEDIATE RELEASE
Contact Information:
Brad Edwards
Brainerd Communicators, Inc.
212-986-6667
edwards@braincomm.com
K-V Pharmaceutical Company Announces Notification from NYSE Regarding Listing Criteria
St. Louis, MO, June 29, 2012 K-V Pharmaceutical Company (NYSE: KVa/ KVb) (the Company) today announced that on June 26, 2012 it was notified by the New York Stock Exchange Regulation, Inc., that its Class A common shares is below criteria for the average closing price of a security of less than $1.00 over a consecutive 30 day trading period. This notification pertains to the Class A Common Stock but also affects the Class B Common Stock. The Company will have a six-month period from the date of the NYSE notification to cure this deficiency.
Per NYSE procedures, K-V intends to notify the NYSE within 10 business days from the receipt of the NYSE notification of its intent to cure this deficiency within the six-month cure period. During this six-month cure period, the Companys shares will continue to be listed and traded on the NYSE, subject to its compliance with other NYSE continued listing standards. However, starting on July 3, 2012 the Companys Class A common shares and Class B common shares will trade under the symbols KVa.BC and KVb.BC, respectively.
About K-V Pharmaceutical Company
K-V Pharmaceutical Company is a specialty branded pharmaceutical company with a primary focus in the area of womens healthcare. As such, we are committed to advancing the health of women across all the stages of their lives.
For further information about K-V Pharmaceutical Company, please visit the Companys corporate Website at http://www.kvpharmaceutical.com.
Cautionary Note Regarding Forward-looking Statements
This release contains various forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 (the PSLRA) and which may be based on or include assumptions concerning our operations, future results and prospects. Such statements may be identified by the use of words like plan, expect,
aim, believe, project, anticipate, commit, intend, estimate, will, should, could, potential and other expressions that indicate future events and trends.
All statements that address expectations or projections about the future, including, without limitation, statements about product launches, governmental and regulatory actions and proceedings, market position, revenues, expenditures and the impact of the recall and suspension of shipments on revenues, adjustments to the financial statements, the filing of amended SEC filings 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 PSLRAs safe harbor provisions, we provide the following cautionary statements identifying important economic, competitive, political, regulatory and technological factors, among others, that 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) | our ability to continue as a going concern; |
(2) | the risk that the Company may be insolvent in the near term, if it is not able to generate sufficient liquidity to satisfy its upcoming payment obligations including $95.0 million of milestone payments owed to Hologic beginning August 4, 2012 and a $13.5 million interest payment owed on its senior secured notes due on September 15, 2012; |
(3) | the risk that, if necessary, the Company will be unsuccessful in attempts to restructure its existing capital structure and operations; |
(4) | risks associated with the introduction and growth strategy related to the Companys Makena® product, including: |
(a) | the impact of competitive, commercial payor, governmental (including Medicaid program), physician, patient, public or political responses and reactions, and responses and reactions by medical professional associations and advocacy groups, on the Companys sales, marketing, product pricing, product access and strategic efforts; |
(b) | the possibility that the benefit of any period of exclusivity resulting from the designation of Makena® as an orphan drug may not be realized as a result of U.S. Food and Drug Administrations (the FDA) decision announced on March 30, 2011 to decline to take enforcement action with regards to compounded alternatives, as updated on June 15, 2012; |
(c) | the Center for Medicare and Medicaid Services (CMS) prior policy regarding Medicaid reimbursement for Makena®, as updated on June 15, 2012, and the resulting coverage decisions for Makena® by various state Medicaid and commercial payors; |
(d) | the statements made on June 15, 2012 by FDA and CMS may not lead to state Medicaid and other payers making Makena® easily accessible to patients, that unreasonable policies and conditions may continue to be imposed and compounding of hydroxyprogesterone caproate could continue to exceed the scope of traditional pharmacy compounding; |
(e) | the satisfaction or waiver of the terms and conditions for our continued ownership of the full U.S. and worldwide rights to Makena® set forth in the previously disclosed Makena® acquisition agreement; |
(f) | the number of preterm birth risk pregnancies for which Makena® may be prescribed, its safety and side effects profiles and acceptance of pricing; |
(g) | the risk that, if needed, future modifications or amendments to the agreement with Cytyc Prenatal Products Corp. and Hologic, Inc. (Cytyc Prenatal Products Corp. and Hologic, Inc. are referred to collectively as Hologic) may be unsuccessful; and |
(h) | our ability to generate sufficient capital to satisfy the $95.0 million of remaining milestone payments to Hologic related to the purchase of Makena®, which are due beginning August 4, 2012; |
(5) | the possibility of further delay or inability to obtain FDA approvals to relaunch Clindesse® and Gynazole-1® and the possibility that any other product relaunch may be delayed or unsuccessful; |
(6) | risks related to compliance with various agreements and settlements with governmental entities including, including: |
(a) | the consent decree between the Company and the FDA and the Companys suspension in 2008 and 2009 of the production and shipment and the nationwide recall of all of the products that it formerly manufactured, as well as the related material adverse effect on our revenue, assets, liquidity and capital resources; |
(b) | the agreement between the Company and the Office of Inspector General of the U.S. Department of Health and Human Services (HHS OIG) to resolve the risk of potential exclusion of the Company from participation in federal health care programs; |
(c) | our ability to comply with the plea agreement between a now-dissolved subsidiary of the Company and the U.S. Department of Justice, including the remaining payments owed under the plea agreement; and |
(d) | our ability to comply with the Settlement Agreement dated December 6, 2011 with the Department of Justice, the United States Attorneys Office for the District of Massachusetts, the Office of Inspector General of the Department of Health and Human Services and the TRICARE Management Activity (collectively the Parties) resolving certain claims under the qui tam provisions of the False Claims Act, including the remaining payments owed under the Settlement Agreement, which could result in significant penalties including exclusion from participation in federal health care programs; |
(7) | the availability of raw materials and/or products manufactured for the Company under contract manufacturing agreements with third parties; |
(8) | risks that the Company may not ultimately prevail in, or that insurance proceeds, if any, will be insufficient to cover potential losses that may arise from: |
(a) | the series of putative class action lawsuits alleging violations of the federal securities laws by the Company and certain individuals; |
(b) | product liability lawsuits, including the possibility that our current estimates of the financial effects of ongoing product liability claims and lawsuits could prove to be incorrect; |
(c) | lawsuits pertaining to indemnification and employment agreement obligations involving the Company and its former Chief Executive Officer; and |
(d) | challenges to our intellectual property rights by actual or potential competitors and challenges to other companies introduction or potential introduction of generic or competing products by third parties against products sold by the Company; |
(9) | the possibility that our current estimates of the financial effect of previously announced product recalls could prove to be incorrect; |
(10) | risks related to the Companys highly leveraged capital structure, including: |
(a) | the risk that the maturities of our debt obligations may be accelerated due to our inability to comply with scheduled interest and principal payments, covenants and restrictions contained in our loan agreements; |
(b) | restrictions on the ability to increase our revenues through certain transactions, including the acquisition or in-licensing of products or relaunch of certain of our products; |
(c) | the risk that, if required, efforts to negotiate amendments to, modification or restructuring of our existing debt obligations may not be successful; and |
(d) | risks that future changes in the Board of Directors may lead to an acceleration of the maturities of the Companys debt; |
(11) | the risk that we may not be able to satisfy the quantitative listing standards of the New York Stock Exchange, including with respect to minimum share price and public float; and |
(12) | the risks detailed from time to time in the Companys filings with the Securities and Exchange Commission (the SEC). |
This discussion is not exhaustive, but is designed to highlight important factors that may impact our forward-looking statements.
Because the factors referred to above, as well as the statements included in Part I, Item 1A Risk Factors, of our Annual Report on Form 10-K for the fiscal year ended March 31, 2012 could cause actual results or outcomes to differ materially from those expressed in any forward-looking statements made by us or on our behalf, you should not place undue reliance on any forward-looking statements. All forward-looking statements attributable to us are expressly qualified in their entirety by the cautionary statements in this Cautionary Note Regarding Forward-Looking Statements and the risk factors that are included under Part I, Item 1A of the Fiscal 2012 Form 10-K. Further, any forward-looking statement speaks only as of the date on which it is made and we are under no obligation to update any of the forward-looking statements after the date of this release. New factors emerge from time to time, and it is not possible for us to predict which factors will arise, when they will arise and/or their effects. In addition, we cannot assess the impact of each factor on our future business or financial condition or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
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