KV PHARMA'B' 
By ST. LOUIS, July 2, 2012 /PRNewswire/ -- K-V Pharmaceutical Company (the "Company") (NYSE: KV.A/KV.B) today addressed the additional guidance provided by the U.S. Food and Drug Administration (FDA), which issued a Questions and Answers document on June 29 to clarify its June 15, 2012 statement on compounded versions of hydroxyprogesterone caproate (the active ingredient in Makena®). FDA provides further guidance to healthcare providers and pregnant women at high risk for recurrent preterm birth, recommending the use of FDA-approved Makena® rather than compounded drug formulations of hydroxyprogesterone caproate. The agency also describes its enforcement policy towards compounded formulations of hydroxyprogesterone caproate. Makena® is the only FDA-approved medication indicated to reduce the risk of preterm birth in women with a singleton pregnancy who have a history of singleton spontaneous preterm birth.
FDA's June 29, 2012 Q&A can be found here: http://www.fda.gov/NewsEvents/Newsroom/PressAnnouncements/ucm310215.htm
FDA's Questions and Answers document recommends that healthcare providers prescribe FDA-approved Makena® first-line for clinically indicated patients and provides guidance on how patients can know if they are receiving Makena®. FDA states, in part:
-- "If there is an FDA-approved drug that is medically appropriate for a
patient, the FDA-approved product should be prescribed and used."
-- "Makena® was approved based on an affirmative showing of safety and
efficacy. The company also demonstrated the ability to manufacture a
quality product. The pre-market review process included a review of the
company's manufacturing information, such as the source of the API used
in the manufacturing of the drug, proposed manufacturing processes, and
the firm's adherence to current good manufacturing practice."
-- "Compounded drugs do not undergo the same premarket review and thus lack
an FDA finding of safety and efficacy and lack an FDA finding of
manufacturing quality."
"It is important for healthcare providers to take the time to read and understand FDA's Questions and Answers document issued on June 29, and counsel patients accordingly," said Douglas Laube, M.D., M.Ed., Professor, Department of Obstetrics and Gynecology, University of Wisconsin Medical School, and Former President, ACOG. "I encourage the medical community to help resolve issues in disparity of care that may have resulted from confusion about the differences between FDA-approved and compounded products, and work together towards addressing the issue of prematurity in the United States."
FDA also describes its enforcement policy towards compounded formulations of hydroxyprogesterone caproate. FDA states:
-- "The compounding of any drug, including hydroxyprogesterone caproate,
should not exceed the scope of traditional pharmacy compounding ... The
FDA does not consider compounding large volumes of copies, or what are
essentially copies, of any approved commercially-available drug to fall
within the scope of traditional pharmacy practice."
-- "The FDA's June 15, 2012 statement should not be interpreted to mean
that the FDA will take enforcement action only if the agency identifies
a particular safety problem."
-- "The FDA may take enforcement action against pharmacies that compound
large volumes of drugs that are essentially copies of commercially
available products and for which there does not appear to be a medical
need for individual patients to whom the drug is dispensed."
Tens of thousands of pregnant women at high risk for recurrent preterm birth are being denied FDA-approved Makena® by certain payers whose coverage policies cite outdated March 2011 statements from FDA and the Center for Medicare and Medicaid Services (CMS). As a result of these unreasonable coverage policies, in certain states, Medicaid participants, in particular, have been denied access to the only FDA-approved medication for their condition - despite the clinical judgment made by many healthcare providers that FDA-approved Makena® is the appropriate choice for their patients, and despite FDA's repeated statements that Makena® offers greater assurance of safety and effectiveness than compounded 17P formulations.
Low-income pregnant women are known to be at higher risk for premature birth. Policies imposed by certain state Medicaid agencies force a pregnant woman at high risk for recurrent preterm birth to "try and fail" or be "unable to tolerate" compounded 17P formulations before the state will approve Makena® for her; others require that she and her physician must demonstrate "medical necessity" for Makena® instead of compounded formulations. These coverage policies disregard guidance issued by FDA and CMS, including the most recent statements. Notably, some states with such policies in place also have prematurity rates above the national average of 12.2 percent - an outcome with heartbreaking results for families and the potential for high life-long medical costs, a significant portion of which will likely be borne by Medicaid.
"Babies born early put a very large financial strain on our healthcare delivery system, and many of these children have persistent developmental delay or lifelong disability. The patient population for Makena® is known to be at particularly high risk for having repeat preterm births," said Casey Younkin, MD, Associate Professor, Division of General OB/GYN, Southern Illinois University School of Medicine. "Potency and purity can vary in compounded formulations. I want to ensure that all of my patients, regardless of their socioeconomic status, have access to FDA-approved Makena®. It is important for State Medicaid programs - including my home state of Illinois - to examine their coverage policies to ensure they are in alignment with both FDA's guidance and evidence-based protocols. No other form of progesterone has been determined by FDA to be effective in this patient population."
As part of its commitment to patients and healthcare providers, the Company has made substantial efforts to work with payers to facilitate insurance coverage of Makena®. The Company's significantly reduced pricing to both commercial and Medicaid payers make the cost of a full course of therapy a fraction of the average cost of a preterm birth. Further, patient co-pays are averaging approximately $8 per injection (often less than the cost to patients for compounded drug formulations). The Company provides Makena® at no out-of-pocket cost to clinically-indicated uninsured women through its financial assistance programs.
KV President and CEO Greg Divis commented, "FDA's further guidance issued on June 29 underscores the need for payers who have made access to Makena difficult to promptly remove roadblocks that have prevented patients from receiving the only FDA-approved drug for their condition. Changing their coverage policies is in the best interests of pregnant women."
About Makena® (hydroxyprogesterone caproate injection)
Makena is a progestin indicated to reduce the risk of preterm birth in women with a singleton pregnancy who have a history of singleton spontaneous preterm birth. The effectiveness of Makena is based on improvement in the proportion of women who delivered <37 weeks of gestation. There are no controlled trials demonstrating a direct clinical benefit, such as improvement in neonatal mortality and morbidity.
Limitation of use: While there are many risk factors for preterm birth, safety and efficacy of Makena has been demonstrated only in women with a prior spontaneous singleton preterm birth. It is not intended for use in women with multiple gestations or other risk factors for preterm birth.
Important safety information for Makena (hydroxyprogesterone caproate injection)
-- Makena should not be used in women with any of the following conditions:
-- Current or history of thrombosis or thromboembolic disorders
-- Known or suspected breast cancer, other hormone-sensitive cancer or
history of these conditions
-- Undiagnosed abnormal vaginal bleeding unrelated to pregnancy
-- Cholestatic jaundice of pregnancy
-- Liver tumors, benign or malignant, or active liver disease
-- Uncontrolled hypertension
-- Makena should be discontinued if thrombosis or thromboembolism occurs
-- Allergic reactions, including urticaria, pruritus and angioedema, have
been reported with use of Makena or with other products containing
castor oil
-- Women receiving Makena should be monitored if they:
-- Are prediabetic or diabetic
-- Have conditions that may be affected by fluid retention, such as
preeclampsia, epilepsy, cardiac or renal dysfunction
-- Have a history of clinical depression; Makena should be discontinued
if depression recurs
-- Develop jaundice; consider whether benefit of use warrants
continuation
-- Develop hypertension
-- Certain pregnancy-related fetal and maternal complications or events
were numerically increased in Makena-treated subjects as compared to
placebo subjects, including miscarriage (2.4% vs. 0%) and stillbirth (2%
vs. 1.3%), admission for preterm labor (16% vs. 13.8%), preeclampsia or
gestational hypertension (8.8% vs. 4.6%), gestational diabetes (5.6% vs.
4.6%), and oligohydramnios (3.6% vs. 1.3%)
-- The most common adverse reactions reported in >2% of subjects and at a
higher rate in the Makena group than in the control group were injection
site reactions (pain [35% vs. 33%], swelling [17% vs. 8%], pruritus [6%
vs. 3%], and nodule [5% vs. 2%]), urticaria (12% vs. 11%), pruritus (8%
vs. 6%), nausea (6% vs. 5%), and diarrhea (2% vs. 1%)
About K-V Pharmaceutical Company
K-V Pharmaceutical Company is a specialty branded pharmaceutical company with a primary focus in the area of women's 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 Company's corporate website at 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 PSLRA's "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
Company's Makena(R)
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 Company's 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(R) as an orphan drug may not be realized
as a result of U.S. Food and Drug
Administration's (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(R), as updated on June
15, 2012,and the resulting coverage decisions for
Makena(R) 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(R) 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(R) set
forth in the previously disclosed Makena(R)
acquisition agreement;
(f) the number of preterm birth risk pregnancies for
which Makena(R) 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(R), which are due beginning August 4,
2012;
(5) the possibility of
further delay or
inability to obtain FDA
approvals to relaunch
Clindesse(R) and
Gynazole-1(R) 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 Company's 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
Attorney's 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
Company's 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 Company's debt;
(11) the risk that we may not
be able to again satisfy
the quantitative listing
standards of the New
York Stock Exchange
("NYSE") with respect
shares of our Class A
common stock. On June
26, 2012 we received a
notice from the NYSE
that shares of our Class
A common stock fell
below the quantitative
listing standard to
maintain a 30 day
average price of greater
than $1.00 per share.
While the NYSE does
allow a period of time
to recover and again
meet the quantitative
listing in the future
face, we face the risk
that the price per share
may not rise to a level
to satisfy this
requirement. We face
the additional risk that
we may not meet other
quantitative listing
standards in the future,
including with respect
to minimum share price
of our Class B shares,
public float and minimum
market capitalization;
and
(12) the risks detailed from
time to time in the
Company's 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.
Media Contact: Ken Fields
Fleishman-Hillard
314-982-0556 (office)
314-640-2529 (cell)
ken.fields@fleishman.com
Investor Relations Contact: Brad Edwards
Brainerd Communicators, Inc.
212-986-6667
edwards@braincomm.com
SOURCE K-V Pharmaceutical Company
