KV Pharmaceuticals has decided to cut its losses and sell its subsidiary Particle Dynamics in a deal worth $24.6m (€20.6m). The deal adds some much needed stability as the business attempts to shore up its finances during a difficult period.
KV Pharmaceutical has begun rehiring employees to produce verification batches of certain products prior to resuming commercial manufacture, which appears to be on schedule after the FDA accepted the work plan.
KV Pharmaceutical has hired a firm specialising in restructuring and bankruptcy and said “there are significant uncertainties regarding its ability to continue as a going concern during the upcoming fiscal year”.
KV Pharmaceutical found deficiencies and instances of noncompliance during its internal investigation, which was launched in response to issues with the FDA and allegations of management misconduct.
