According to the news published on Bloomberg Businessweek (link) K-V Pharmaceutical Co. has filed filing for Chapter 11 bankruptcy protection. The company filed for protection in New York and it will continue its operations. The reasons behind the bankruptcy are stated as weak sales, a payment related to Makena (it is a costly preterm birth drug) and sanctions about past manufacturing problems.
What has ASKMORE so far told about the company? ASKMORE has started giving alarms since 2010 fiscal year; and finally in 2012 due to constant deterioration in financial situation MORE Ratings assigned to K-V Pharmaceutical has become “C” (Extremely Pathological). Company’s Shareholders Funds has had negative values for the last three fiscal years leading to no- return level Solvency indicators. In 2012,the liquidity reached to pathological and high danger levels. Due to decreasing Sales performance and soaring operating costs; the company ended the three financial years with Losses which can be easily observed in ASKMORE at first sight.