, Dec. 7, 2011 /PRNewswire/ -- K-V Pharmaceutical Company (NYSE: KV.A/ KV.B) (the "Company" or "K-V"), today commented on the settlement of false claims allegations with the U.S. Department of Justice ("DOJ") associated with the Company's former ETHEX generic pharmaceutical subsidiary.
In connection with a multi-defendant action captioned
v. ETHEX Corp., et al., No. 02-11738-RWZ (D. Mass.), K-V has agreed to pay a total of
over five years to resolve False Claims Act allegations raised by the government that ETHEX, the Company's former generic pharmaceutical subsidiary, allegedly failed to advise the Centers for Medicare and Medicaid Services (CMS) that two products -- Nitroglycerin Extended Release Capsules (Nitroglycerin ER) and Hyoscyamine Sulfate Extended Release Capsules (Hyoscyamine ER) -- purportedly did not qualify for coverage under federal health care programs. K-V admitted no wrongdoing in settling the matter. The settlement includes a multi-year payment schedule with nominal near-term capital requirements.
"We are satisfied with the settlement terms and the resolution of a legacy issue associated with our former ETHEX subsidiary," stated
, Chief Executive Officer of K-V. "The agreed terms include a reasonable five-year payment schedule, with less than
to be paid within the first year. We are also pleased that the government deemed our current operations and compliance function sufficiently robust as to not require a corporate integrity agreement. The closure of this matter is another step forward as K-V moves ahead as a women's healthcare focused branded specialty pharmaceutical company."
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
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