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What: Shares of drugmaker KV Pharmaceutical
So what: KV seemed determined to take full advantage of its exclusive rights to sell Makena when it raised the price of the drug 100-fold, but the FDA statement suggests that pharmacies will be able to continue marketing a cheaper alternative unperturbed. Of course, the news comes amid ever-increasing outrage from doctors, patients, and politicians toward KV's particularly extreme price hike.
Now what: KV continues to be an uncertain situation. KV management hasn't responded to today's news yet, but you've got to think that there has to be some kind of Makena price reduction coming. Exactly how big of a discount, of course, may end up determining whether today's plunge of more than 25% is under or overdone.
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