ST. LOUIS (AP) -- KV Pharmaceutical Co., whose stock price has been battered by product recalls, said Monday it will cut 700 workers in an effort to reduce costs.
The company announced last month it would halt all manufacturing and shipping of its drugs after issuing its fourth recall in about three months. The most recent action dealt with prescription iron supplements and prenatal vitamin capsules and tablets that were not made under federally-enforced manufacturing standards.
In a statement, KV said it hoped to rehire some of the 700 employees when it resumes production.
"The need to reduce our employee base is regrettable and one of the most difficult parts of our program to resume manufacturing and shipping product," said David Van Vliet, interim president and chief executive.
Shares of KV Pharmaceutical Co. fell 5 cents, or 7.4 percent, to 66 cents in afternoon trading.