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KV Pharmaceutical Company Reports Fiscal 2009 First Quarter Results
Date:8/11/2008

M) will make a significant contribution to Ther-Rx revenues during the second half of fiscal 2009.

ETHEX Corporation -- 53% Net Sales Growth Due to Metoprolol Succinate

ETHEX Corporation net sales of $92.3 million in the first quarter represented a 52.6% increase compared to the prior year first quarter of $60.5 million. Sales growth during the quarter was impacted by volume growth from the sale of all four strengths of metoprolol succinate extended-release tablets, which contributed $35.5 million in net revenues during the quarter, offset in part by the reduced level of sales from our discontinued cough/cold product line.

ETHEX's cough/cold product line, except for one product, was discontinued earlier this calendar year following a shift in FDA policy on products containing guaifenesin. Our currently marketed generic cough/cold product generated net revenues of $0.5 million during the quarter, compared with sales of the entire cough/cold product line of $9.3 million for the first quarter of fiscal 2008.

ETHEX's profitability remained strong for another quarter as measured by its gross profit margins of 60.5%, compared to gross margins of 56.0% in the first quarter of fiscal 2008.

The ETHEX pipeline remains strong. Last year we filed 16 ANDA's and this year we expect to file another 16 ANDA's. During this fiscal year, we expect six ANDA approvals, following five ANDA approvals received by KV in our preceding fiscal year. In addition, ETHEX believes it is the first to file for a number of Paragraph IV generic products with significant revenue contribution potential.

Outlook for the Year

The Company currently expects to report net revenue of between $650 million and $675 million and net income per diluted Class A share of between $1.65 and $1.75 for the fiscal year ending March 31, 2009. Although KV historically has not issued revenue or earnings guidance, in light of potential competitive challenges related to certain
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SOURCE KV Pharmaceutical Company
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