ST. LOUIS (AP) -- K-V Pharmaceutical Co. said Friday it will sell its generic drug business to Zydus Pharmaceuticals Inc. for $60 million, as it focuses on becoming a branded drug company specializing in women's health.
The deal includes the sale of K-V's subsidiary, Nesher Pharmaceuticals Inc. K-V said the sale of its generic business has been an important goal for the company's board of directors and management.
The St. Louis company hired Jefferies & Co. last November to help advise on options for Nesher, which K-V created last fall to replace its older generic unit, Ethex. Ethex was likely to be excluded from federal health programs after it was hit by multiple product recalls and plead guilty to two criminal charges that it did not inform regulators about manufacturing problems.
The deal is expected to close in the second quarter of K-V's 2012 fiscal year.
Shares of K-V Pharmaceutical climbed 9.2 percent, or 22 cents, to $2.60 in morning trading.
