Did we just completely miss this??!! KV Pharma has axed another mass portion of its people. This time the damage is at 310. In early February, KV announced they would be kanning 700 workers as a result of production suspensions, drug recalls, lawsuits and a federal investigation into management misconduct.

My god.

The workers will be shown the door by March 15th.

The company also said the layoffs will reduce its average monthly operating costs from $29M to $17.9M.

So, let’s do the math:

A. 700 workers + 310 workers = 1,010 workers

B. $29M – $17.9M = $11.1M monthly cost of 1,010 workers

C. = B/A = $10,990

D. = C x 12 months = $131,880 = average annual salary of a KV employee

Pay for all the executives in 2008:

*David Van Vliet, Interim CEO – $488,000 salary

*Ronald Kanterman, CFO – $341,000 salary

*Marc Hermelin, Director – $ 5.66M salary, $561,000 stock options exercised

*Michael Anderson, VP Industry Presence & Development – $419,000 salary, $63,000 stock options exercised.

Stock price March 3, 2008 – $25.52

Stock price March 3, 2009 – $1.20

Thoughts?

Image from hewilliams

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