SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

             QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

(X)      Quarterly report for the quarterly period ended December 31, 1997

                                       OR

(   )    Transition Report Pursuant to Section 13 or 15(d) of The Securities
         Exchange Act of 1934

Commission file number 1-9601

                           K-V PHARMACEUTICAL COMPANY
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

         DELAWARE                                        43-0618919
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
 incorporation or organization)

                2503 SOUTH HANLEY ROAD, ST. LOUIS, MISSOURI 63144
--------------------------------------------------------------------------------
                    (Address or principal executive offices)
                                   (Zip Code)

                                 (314) 645-6600
--------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
              (Former name, former address and former fiscal year,
                         if changed since last report)

         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934 during the preceding 12 months (or such shorter  period that the registrant
was  required  to file such  reports)  and (2) has been  subject to such  filing
requirements for the past 90 days.

Yes  X            No

         Title of Class of                           Number of Shares
         Common Stock                       Outstanding as of this Report Date

Class A Common Stock, par value $.01 per share                       7,774,177
                                                              ------------------
Class B Common Stock, par value $.01 per share                       4,296,150
                                                              ------------------
<PAGE>

                                     PART I

                              FINANCIAL INFORMATION

<PAGE>
<TABLE>

                      CONSOLIDATED STATEMENTS OF OPERATIONS

      For the Three Months and Nine Months Ended December 31, 1997 and 1996
                                   (Unaudited)

<CAPTION>

                                                 For the Three                              For the Nine
                                                 Months Ended                               Months Ended
                                         12/31/97             12/31/96             12/31/97              12/31/96
<S>                                     <C>                 <C>                  <C>                   <C> 
Revenues                               $28,433,858          $14,726,796           $68,525,787          $40,889,061

Costs and Expenses:

Manufacturing costs                     17,040,869            8,180,977            39,590,928           21,960,539
Research and development                 1,518,272            1,302,529             4,487,388            3,659,513
Selling and administrative               5,655,157            3,202,304            13,586,787           10,036,125
Interest expense                           121,206              162,667               327,885              313,952
Amortization of intangible
  assets                                    68,384               41,316               185,742              138,683
                                         ---------            ---------          ------------         ------------
Total Costs and Expenses                24,403,888           12,889,793            58,178,730           36,108,812
                                        ----------           ----------          ------------         ------------

Income before income taxes               4,029,970            1,837,003            10,347,057            4,780,249

Provision for income taxes               1,266,584               30,000             3,560,672               90,000
                                         ---------           ----------           -----------         ------------

Net Income                             $ 2,763,386          $ 1,807,003           $ 6,786,385         $  4,690,249
                                       ===========          ===========           ===========         ============


Net income per common share -                $0.22                $0.14                 $0.54                $0.37
                                             =====                =====                 =====                =====

Net income per common share
  assuming dilution                          $0.21                $0.14                 $0.52                $0.36
                                             =====                =====                 =====                =====


</TABLE>

See accompanying Notes to Financial Statements

<PAGE>


                   KV PHARMACEUTICAL COMPANY AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                      December 31, 1997 and March 31, 1997
                                   (Unaudited)

                                               12/31/97                 03/31/97

ASSETS
Current Assets:
Cash and equivalents                       $  9,378,460             $  7,627,523
Receivables                                  16,897,249                8,579,598
Inventories                                  16,446,844               12,785,588
Prepaid and other                             1,572,666                1,230,193
                                          -------------           --------------
   Total Current Assets                      44,295,219               30,222,902

Net property and equipment                   12,254,501                8,117,809

Goodwill and other                            3,360,660                3,021,009
                                          -------------            -------------

TOTAL ASSETS                                $59,910,380              $41,361,720
                                            ===========              ===========


LIABILITIES
Current Liabilities:
Current maturities of long-term debt      $     565,955            $     351,316
Accounts payable                              4,631,167                2,045,048
Accrued liabilities                           8,875,926                2,809,571
                                         --------------            -------------
  Total Current Liabilities                  14,073,048                5,205,935

Long-term debt                                4,960,556                2,158,025
Other                                         1,205,429                  913,319
                                          -------------           --------------
  Total Liabilities                          20,239,033                8,277,279
                                           ------------            -------------

Commitments and contingencies

SHAREHOLDERS' EQUITY
7% Cumulative convertible  
  preferred stock                                 2,410                    2,410
Class A common stock                             77,979                   77,175
Class B common stock                             43,199                   43,766
Additional paid-in capital                   33,961,283               33,844,685
Retained earnings (deficit)                   5,641,429                (828,642)
Less cost of Class A and Class B
  common stock in treasury                     (54,953)                 (54,953)
                                        ---------------           --------------
TOTAL SHAREHOLDERS' EQUITY                   39,671,347               33,084,441
                                           ------------             ------------

TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY                        $59,910,380              $41,361,720
                                            ===========              ===========

See accompanying Notes to Financial Statements

<PAGE>

                      CONSOLIDATED STATEMENTS OF CASH FLOW
              For the Nine Months Ended December 31, 1997 and 1996
                                   (Unaudited)


                                                        1997               1996
                                                    --------             ------
OPERATING ACTIVITIES
Net Income                                        $6,786,385       $   4,690,249

Adjustments to reconcile net income to net
  cash provided by operating activities:
  Depreciation and amortization                    1,404,449           1,217,877

Changes in operating assets and liabilities:
(Increase) in receivables                        (8,317,651)           (856,420)
Net (increase) in inventories and
  other current assets                           (4,003,729)         (3,406,695)
Net increase in accounts payable and
  accrued liabilities                             8,652,474            1,588,829
Increase in other liabilities                       292,112               39,067
                                             --------------       --------------
NET CASH PROVIDED BY
  OPERATING ACTIVITIES                            4,814,040            3,272,907
                                              -------------         ------------

INVESTING ACTIVITIES
  Purchase of property and equipment, net       (5,355,398)            (991,021)

  Other, net                                      (525,397)            (636,941)
                                             --------------        -------------

NET CASH (USED IN) INVESTING
  ACTIVITIES                                    (5,880,795)          (1,627,962)
                                               ------------         ------------

FINANCING ACTIVITIES
  Proceeds from term loan facility                3,500,000                 -
  Principal payments on long-term debt            (482,830)            (686,484)
  Dividends paid on preferred stock               (316,314)                 -
  Exercise of common stock options                  116,836               34,919
                                               ------------       --------------
NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES                              2,817,692            (651,565)
                                                -----------        -------------

INCREASE IN CASH
  AND CASH EQUIVALENTS                            1,750,937              993,380
Cash and cash equivalents
  at beginning of year                            7,627,523            2,038,069
                                                -----------         ------------
CASH AND CASH EQUIVALENTS
  AT END OF PERIOD                               $9,378,460          $ 3,031,449
                                                 ==========          ===========

See accompanying Notes to Financial Statements
<PAGE>

                    NOTES TO SUMMARIZED FINANCIAL INFORMATION



NOTE A  -  BASIS OF PRESENTATION

         The interim financial  statements  presented here have been prepared in
conformity with the accounting  principles and practices and methods of applying
the same (including  consolidating  practices) reflected in the Annual Report of
the  Company  on Form 10-K for the year  ended  March 31,  1997  filed  with the
Commission,  except that  detailed  footnotes  and  schedules  are not included.
Reference is hereby made to the footnotes and schedules  contained in the Annual
Report.  All  significant  intercompany  balances  and  transactions  have  been
eliminated and, in the opinion of management,  all  adjustments,  which are of a
normal  recurring  nature  only,  necessary  to present a fair  statement of the
results of the Company and its subsidiaries have been made.

NOTE  B  -  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICY

         In 1997, the Financial  Accounting  Standards Board issued Statement of
Financial  Accounting  Standards  No. 128,  Earnings  per Share.  Statement  128
replaced the previously  reported  primary and fully diluted  earnings per share
with basic and diluted  earnings per share.  Unlike primary  earnings per share,
basic earnings per share excludes any dilutive effects of options,  warrants and
convertible  securities.  Diluted  earnings  per  share is very  similar  to the
previously  reported  fully diluted  earnings per share.  All earnings per share
amounts for all periods have been presented,  and where  necessary,  restated to
conform to the Statement 128 requirements.

NOTE C - INCOME  TAXES

         Decrease in the deferred tax asset  valuation  allowance  resulted from
changes in management's  estimates of the  utilization of temporary  differences
caused by the Company's improved operating results.


<PAGE>

NOTE D  -  EARNINGS PER SHARE

         The  following  table sets forth the  computation  of basic and diluted
earnings per share:

<TABLE>
<CAPTION>

                                                  For the Three Months Ended              For the Nine Months Ended
Numerator:                                       12/31/97           12/31/96              12/31/97          12/31/96
<S>                                           <C>                 <C>                  <C>                <C>    

Net income                                    $ 2,763,386         $ 1,807,003          $ 6,786,385        $ 4,690,249

Preferred stock dividends                       (105,438)           (105,438)            (316,314)          (316,314)
                                             ------------        ------------        -------------      ------------- 

Numerator for basic earnings per
   share--income available to common
   stockholders                               $ 2,657,948         $ 1,701,565          $ 6,470,071        $ 4,373,935

Effect of dilutive securities:
   Preferred stock dividends                      105,438               -                      -                -
                                             ------------      --------------        -------------    -----------

Numerator for diluted earnings per
   share-income available to
   common stockholders after
   assumed conversions                        $ 2,763,386         $ 1,701,565          $ 6,470,071        $ 4,373,935

Denominator:

Denominator for basic earnings per
   share--weighted-average shares              12,068,399         11,828,548            12,056,124       11,826,058

Effect of dilutive securities:
   Employee stock options                         505,619            221,272               397,043          224,112
   Convertible preferred stock                    602,500             -                       -               -
                                             ------------     --------------          ------------    ---------

Dilutive potential common shares                1,108,119          221,272             397,043             224,112

   Denominator for diluted earnings
      per share--adjusted weight-average
      shares and assumed conversions           13,176,518         12,049,820            12,453,167       12,050,170
                                               ==========         ==========            ==========       ==========

Basic Earnings per Share (1):                       $0.22              $0.14                  $0.54           $0.37
                                                    =====              =====                  =====           =====

Diluted earnings per share (1):                     $0.21              $0.14                  $0.52           $0.36
                                                    =====              =====                  =====           =====
<FN>
(1)    The  two-class  method  for  Class A and  Class  B  common  stock  is not
       presented  because  the  earnings  per  share  are  equivalent  to the if
       converted method since dividends were not declared or paid and each class
       of common stock has equal ownership of the Company.
</FN>
</TABLE>

<PAGE>
         Any forward-looking statements set forth in this Report are necessarily
subject to significant  uncertainties and risks.  When used in this Report,  the
words "believes,"  "anticipates,"  "intends," "expects," and similar expressions
are intended to identify  forward-looking  statements.  Actual  results could be
materially different as a result of various possibilities. Readers are cautioned
not to place undue reliance on forward-looking  statements,  which speak only as
of the date hereof. The Company undertakes no obligation to publicly release the
results of any revisions to these  forward-looking  statements which may be made
to reflect  events or  circumstances  after the date  hereof or to  reflect  the
occurrence of unanticipated events. 

         Item 2: Management's  Discussion and Analysis of Results of Operations,
                 and  Liquidity  and  Capital  Resources                       
                                                                               
         (a) Results of Operations Revenues.                                   
                                                                                
         Consolidated  revenues  for the third  quarter of fiscal  1998  totaled
$28.4  million,  compared to $14.7 million for the third quarter of fiscal 1997,
an increase  of $13.7  million,  or 93%,  compared to the same period last year.
Year-to-date  consolidated  revenues  were $68.5  million,  an increase of $27.6
million,  or 67%,  compared to the same period last year.  The increase in sales
volume for both the  quarter  and  year-to-date  is  primarily  attributable  to
continued  growth being  experienced  from sales of new and  existing  products.
ETHEX sales  increased by $13.4 million,  or 122%, in the third quarter and were
up $26.5  million,  or 89%,  for the  year-to-date  over the same periods of the
prior year.  Particle Dynamics and Contract Services combined revenues increased
$.3 million, or 9%, in the third quarter and $1.1 million, or 10%,  year-to-date
over the respective periods of the prior year. These increases are attributed to
increased sales volume.  

         Costs and Expenses.  Manufacturing  costs  increased as a percentage of
revenues  to 60% in the  quarter  ended  December  31, 1997 from 56% in the same
period  last year.  Year-to-date  manufacturing  costs as a percent of net sales
increased to 58% from 54% for the nine months ended  December 31, 1997 and 1996,
respectively.  These increases were primarily attributable to changes in the mix
of products sold.  

         Research and  development  costs  increased  $.2 million or 17% for the
quarter ended December 31, 1997, compared to the same quarter of the prior year.
Year-to-date,  these costs increased $.8 million,  or 23%,  compared to the same
period of the  prior  year.  These  increases  are  primarily  due to  increased
personnel, clinical studies and supply costs to support continuing research into
advanced drug delivery technologies and products.

<PAGE>

         Selling and administrative  expense increased $2.5 million, or 77%, for
the quarter  ended  December 31, 1997,  compared to the same period of the prior
fiscal year but  decreased to 20% of total  revenues from 22% in the prior year.
Year-to-date selling and administrative expenses increased $3.6 million, or 35%,
over the same  period  last year but  decreased  to 20% from 25% as a percent of
total  revenue  compared to the prior year.  Such  increased  expenditures  were
primarily related to higher marketing,  selling and administrative support costs
associated with new product  introductions  and expansion of existing  business.
Pretax income for the quarter ended December 31, 1997 was $4.0 million  compared
to $1.8  million in the prior year  quarter,  an increase of 122%.  Year-to-date
pretax  income was $10.3  million  compared  to $4.8  million for the prior year
period,  an increase of 115%.  These  improvements  were the result of continued
sales growth.  

         For the nine months ended December 31, 1997 and 1996, the Company had a
current provision for income taxes of $3,560,672 and $90,000,  respectively. The
fiscal 1998  provision  was based on the estimated  federal and state  statutory
rates as well as  utilization  of a part of the  Company's  deferred tax credits
realized  from prior  years,  while the fiscal 1997  provision  was based on the
alternative  minimum tax, since no provision for income taxes was otherwise made
as a result of available net operating loss carryforwards. No loss carryforwards
are  available  for fiscal 1998.  Decrease in the  deferred tax asset  valuation
allowance resulted from changes in management's  estimates of the utilization of
temporary  differences caused by the Company's  improved operating results.  

         Net Income.  As a result of the  factors  described  above,  net income
improved  $1  million,  or  53%,  for the  third  quarter  of  fiscal  1998  and
year-to-date  improved $2.1 million, or 45%, compared to the same periods of the
prior year.

<PAGE>

         (b)  Liquidity and Capital  Resources.

         The  following  table  sets forth  selected  balance  sheet  ratios and
amounts at December 31, 1997, March 31, 1997 and December 31, 1996.


                                                   ($ in 000's)
                                     12/31/97       03/31/97         12/31/96
Working Capital Ratio                3.1 to 1       5.8 to 1         4.5 to 1
Quick Ratio                          1.9 to 1       3.1 to 1         2.1 to 1
Debt to Debt Plus Equity             .12 to 1       .07 to 1         .09 to 1
Total Liabilities to Equity          .51 to 1       .25 to 1         .33 to 1
Cash and Equivalents                   $9,378         $7,628           $3,031
Working Capital                        30,222         25,017           18,031
Long Term Debt                          6,166          3,071            3,115
Stockholders' Equity                   39,671         33,084           25,275

         During the quarter ended December 31, 1997,  working capital  increased
$4.1  million,  or 16%,  to $30.2  million,  while  cash  and  cash  equivalents
increased $5.7 million.  Working  capital for the nine months ended December 31,
1997  increased  $5.2  million,  or  21%,  including  an  increase  in  accounts
receivable  of $8.3  million,  principally  from  increased  sales volume and an
increase in  inventories  and other current  assets of $4 million to support the
additional sales volume and seasonal business. Net cash provided from operations
was $4.8 million. Borrowings reflected a decrease of $.5 million, as a result of
scheduled  payments on the Industrial  Revenue Bond and building  mortgage.  The
ratio of current assets to current  liabilities  was 3.1 to 1 as of December 31,
1997, compared to 4.5 to 1 as of December 31, 1996. 

         The debt to debt-plus-equity and total liabilities to equity ratios for
the first nine months of fiscal 1998 increased primarily as a result of the debt
created to finance  the  purchase of a leased  facility  and  increased  accrued
liabilities related to the growth in sales. 

         Investing  activities for fiscal 1998 reflected capital expenditures of
$5.4 million,  primarily to finance the purchase of a leased  facility,  and net
expenditures  for other assets of $.5 million,  which funds were  provided  from
operations and long-term borrowings.  

         The Company's  cash and cash  equivalents  on hand at December 31, 1997
were $9.4 million. In addition, the Company currently has in place a $20 million
credit facility with LaSalle  National Bank. This credit facility  consists of a
three year,  unsecured revolving line of credit and letter of credit facility to
support the Company's requirements. 

         Although  the  Company  generally  has been  able to pass  along to its
customers at least a portion of cost increases in labor,  manufacturing  and raw
material costs under its agreements, in certain instances no increases have been
effected due to market  conditions.  It is not  meaningful  to compare  changing
prices over the past several years because products,  product formulas,  product
mix and sources of raw materials have varied substantially.  

         The Company expects to continue to increase expenditures and investment
for research,  clinical and regulatory  efforts  relating to the development and
commercialization of proprietary new products, advanced drug delivery technology
products and their approval for marketing.

         The Company  believes funds  generated  from  operating  activities and
existing cash,  together with the funds  available under its credit facility and
funds provided from licensing agreements, will be adequate to fund the Company's
current  requirements arising from the continued sales growth being experienced.

Item 6: Exhibits and Reports on Form 8-K. 

         (a)  Exhibits - None.

         (b) The Company did not file any reports on Form 8-K during the quarter
ended December 31, 1997.

<PAGE>
                                   SIGNATURES


         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  Registrant  has duly  caused  this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                               KV PHARMACEUTICAL COMPANY



Date:    February  13,  1998                  /s/ Marc S. Hermelin
         ---------------------------          --------------------
                                              Marc S. Hermelin
                                              Vice Chairman of the Board




Date:    February  13,  1998                 /s/ Gerald R. Mitchell
     -------------------------------         ----------------------
                                             Gerald R. Mitchell
                                             Vice President - Finance
                                             Chief Financial Officer