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What: Shares of prescription drug developer KV Pharmaceutical
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.
Interested in more info on KV Pharmaceutical? Add it to your watchlist.
Fool contributor Anders Bylund holds no position in any of the companies discussed here. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is investors writing for investors.