KV Pharma is all business. Following its announcement last Friday of FDA approval to begin production of Micro-K, a treatment for low blood potassium, the drugmaker now says it has landed a $20 million loan.
KV says it will use the funds for working capital and operating purposes. The backers are U.S. Healthcare I and U.S. Healthcare II. KV is on the hook for interest at an annual rate of 16.5 percent, of which five percent is payment in kind.
"This financing is an important step in returning the company to normalized operations," says interim CEO Greg Divis. KV plans to continue fundraising to keep operations going beyond the end of the year.
The FDA approval to resume Micro-K operations follows a mid-August FDA inspection. More inspections are to come for KV in preparation for bringing additional products back to the U.S. market. Product recalls in 2008 stemming from sub-par manufacturing practices began a downslide that led to product seizures and plant shutdowns.
- here's the KV release