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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of prescription drug developer KV Pharmaceutical (NYSE: KV-A ) aren't looking too good today, falling as much as 11.3% on above-average trading volume.
So what: The drop comes as KV announced a significantly reduced price for its recently FDA-approved preterm labor prevention drug, Makena. The drug's high price to patients had come under heavy fire, and this was KV's way out of that quandary.
Now what: The official party line is that KV took action to ensure access to the drug for women at high risk. If you believe that halo-topped vision, I have some oceanfront property set aside for you in Switzerland. The drug would simply not fly under the old pricing plan. Makena remains a potential blockbuster even as a lower-margin product, and KV's stock has still more than tripled since that crucial FDA approval, but it looks like early investors and company brass got a little too greedy for their own good.
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