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, 1999
                                                          ----------------------

                                       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                                   12,191,300
                                                   -------------------
Class B Common Stock, par
value $.01 per share                                    6,571,970
                                                  --------------------

<PAGE>

                                     PART I

                              FINANCIAL INFORMATION
<PAGE>


                   KV PHARMACEUTICAL COMPANY AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
     For the Three Months and Nine Months Ended December 31, 1999 and 1998
                                   (Unaudited)
                (Dollars in 000's, except per share information)


                                     For the Three             For the Nine
                                     Months Ended              Months Ended
                                --------------------      --------------------
                                12/31/99    12/31/98      12/31/99    12/31/98
                                --------    --------      --------    --------

Revenues                         $38,792     $27,022       $107,596    $79,097
                                 -------     -------       --------    -------

Costs and Expenses:
  Manufacturing costs             16,234      13,506         48,459     43,306
  Research and development         2,137       1,628          6,040      4,934
  Selling and administrative      10,433       5,731         28,880     15,918
  Amortization of intangible
    assets                           611          42          1,680        124
                                --------     -------       --------    -------
Total Costs and Expenses          29,415      20,907         85,059     64,282
                                  ------     -------        -------    -------

Operating income                   9,377       6,115         22,537     14,815
                                 -------     -------        -------    -------

Other income (expense):
  Interest expense                  (485)       (106)        (1,569)      (332)
  Interest and other income          320         445            545      1,077
                                 -------     -------      ---------    -------
Total other income (expense)        (165)        339         (1,024)       745
                                  ------     -------        ---------  -------

Income before income taxes         9,212       6,454         21,513     15,560
Provision for income taxes         3,498       2,434          8,172      5,907
                                 -------     -------       --------    -------

Net Income                        $5,714      $4,020        $13,341    $ 9,653
                                  ======      ======        =======    =======

Net income per Common Share
   Basic                           $0.30       $0.21          $0.70      $0.51
                                   =====       =====          =====      =====

   Diluted                         $0.28       $0.20          $0.66      $0.48
                                   =====       =====          =====      =====


See accompanying Notes to Financial Statements

                                       3

<PAGE>
<TABLE>
<CAPTION>


                   KV PHARMACEUTICAL COMPANY AND SUBSIDIARIES
                              COMPREHENSIVE INCOME
      For the Three Months and Nine Months Ended December 31, 1999 and 1998
                                   (Unaudited)
                               (Dollars in 000's)


                                                                    For the Three                    For the Nine
                                                                    Months Ended                     Months Ended
                                                              -----------------------          ---------------------
                                                              12/31/99       12/31/98         12/31/99           12/31/98
                                                              ---------      --------         --------           --------
<S>                                                         <C>           <C>             <C>                <C>

Net income                                                     $5,714          $4,020         $13,341              $9,653
                                                               ------          ------         -------              ------
Other comprehensive income, net of tax:
   Unrealized losses on securities:
      Unrealized holding losses arising during period              (5)              -             (38)                  -
      Reclassification adjustment for losses on
      the sale of securities included in net income                22               -              63                   -
                                                             --------       ---------        --------           ---------
Other comprehensive income                                         17               -              25                   -
                                                             --------       ---------        --------           ---------
Comprehensive Income                                           $5,731          $4,020         $13,366              $9,653
                                                               ======          ======         =======              ======


</TABLE>

                                       4
<PAGE>


                   KV PHARMACEUTICAL COMPANY AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                      December 31, 1999 and March 31, 1999
                (Dollars in 000's, except per share information)

                                                     (Unaudited)
                                                      12/31/99       03/31/99
                                                     -----------     --------
ASSETS
Current Assets:
  Cash and equivalents                                $  3,337        $ 2,617
  Marketable securities available-for-sale                   -          7,523
  Receivables, less allowance for
    doubtful accounts of $1,083 and $631
      at December 31 and March 31,
      respectively                                      26,111         18,988
  Receivable, arbitration award                              -         13,253
  Inventories                                           27,651         23,653
  Deferred income taxes                                  3,379          3,379
  Prepaid and other current assets                         172            168
                                                    ----------     ----------
     Total Current Assets                               60,650         69,581

Property and equipment, less
  accumulated depreciation                              28,528         18,967

Intangibles and other assets,
  net of amortization                                   47,261         39,442
                                                    ----------      ---------
TOTAL ASSETS                                          $136,439       $127,990
                                                      ========       ========

LIABILITIES
Current Liabilities:
  Accounts payable                                    $  8,609       $  8,667
  Accrued liabilities                                   12,863         17,090
  Current maturities of long-term debt                   1,652            712
                                                    ----------     ----------
    Total Current Liabilities                           23,124         26,469

Long-term debt                                          23,875         31,490
Deferred income taxes                                      379            379
Other long-term liabilities                              2,296          2,104
                                                    ----------     ----------
TOTAL LIABILITIES                                       49,674         60,442
                                                      --------       --------

SHAREHOLDERS' EQUITY
7% Cumulative Convertible Preferred
  Stock, $.01 par value; $25.00 stated and
  liquidation value; 840,000 shares authorized;
  issued and outstanding - 240,000 and 241,000
  shares at December 31 and March 31,
  respectively (convertible into Class A shares
  at a ratio of 3.75 to one)                                 2              2

Class A and Class B Common Stock, $.01 par value:
  150,000,000 and 75,000,000 shares authorized,
  respectively; Class A-issued 12,226,919 and
  11,923,319 at December 31 and March 31                   122            120
  Class B-issued 6,607,589 and 6,393,867
  at December 31 and March 31 (convertible
  into Class A shares on a one-for-one basis)               66             64

Additional paid-in capital                              40,693         34,531
Retained earnings                                       45,937         32,911
Accumulated comprehensive loss                               -            (25)
Less:  Treasury Stock, 35,619 shares each of
  Class A and Class B Common Stock, at cost                (55)           (55)
                                                     ---------     ----------
TOTAL SHAREHOLDERS' EQUITY                              86,765         67,548
                                                      --------     ----------

TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY                                  $136,439       $127,990
                                                      ========       ========

See accompanying Notes to Financial Statements

                                       5
<PAGE>


                   KV PHARMACEUTICAL COMPANY AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOW
              For the Nine Months Ended December 31, 1999 and 1998
                                   (Unaudited)
                               (Dollars in 000's)

                                                          1999            1998
OPERATING ACTIVITIES
Net Income                                             $13,341          $9,653
Adjustments to reconcile net income to net
  cash provided by operating activities:
  Depreciation and amortization                          3,223           1,317
  Deferred compensation                                    192             389
Changes in operating assets and liabilities:
   (Increase) decrease in receivables                   (7,123)          2,515
   Decrease in receivable arbitration award             13,253               -
   (Increase) in inventories                            (3,998)         (6,474)
   (Increase) decrease in prepaids and other
     assets                                             (1,038)            200
   (Decrease) in accounts payable and
      accrued liabilities                               (4,285)            (75)
                                                      --------       ---------

NET CASH PROVIDED BY OPERATING ACTIVITIES               13,565           7,525
                                                      --------        --------

INVESTING ACTIVITIES
  Purchase of property and equipment, net              (11,104)         (3,917)
  Sale of marketable securities                          7,548               -
  Product acquisition                                   (3,033)              -
                                                      --------       ---------

NET CASH (USED IN) INVESTING ACTIVITIES                 (6,589)         (3,917)
                                                      --------        --------

FINANCING ACTIVITIES
  Principal payments on long-term debt                  (9,607)           (500)
  Issuance of long-term debt                             2,000               -
  Dividends paid on Preferred Stock                       (315)           (316)
  Exercise of Common Stock options                       1,666             444
                                                      --------        --------

NET CASH (USED IN) FINANCING ACTIVITIES                 (6,256)           (372)
                                                        ------        --------

INCREASE IN CASH AND CASH EQUIVALENTS                      720           3,236
CASH AND CASH EQUIVALENTS AT:
  BEGINNING OF YEAR                                      2,617          18,158
                                                      --------        --------
  END OF PERIOD                                        $ 3,337         $21,394
                                                       =======         =======

Non-cash investing and financing activities:
  Portion of product acquisition
  acquired through issuance of:
    Short-term debt                                        933              -
    Common stock                                         4,500              -


See accompanying Notes to Financial Statements

                                       6
<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,  1999  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 - INVENTORIES

         Inventories consist of ($ in 000's):

                                        December 31, 1999      March 31, 1999
                                        -----------------      --------------

         Finished products                  $11,366               $11,411
         Work-in-process                      3,795                 2,282
         Raw materials and supplies          12,490                 9,960
                                           --------             ---------
                                            $27,651               $23,653
                                            =======               =======

                                       7
<PAGE>

<TABLE>
<CAPTION>

NOTE C  -  EARNINGS  PER SHARE

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


                                               For the Three Months Ended                For the Nine Months Ended
                                              ---------------------------              -----------------------------
Numerator ($ in 000's):                       12/31/99           12/31/98              12/31/99             12/31/98
                                              --------           --------              --------             --------
<S>                                        <C>                 <C>                  <C>                 <C>

Net income                                    $ 5,714             $ 4,020              $13,341              $ 9,653

Preferred Stock dividends                        (105)               (105)                (315)                (316)
                                              -------            --------            ---------            ---------

Numerator for basic earnings per
   share--income available to common
   stockholders                                 5,609               3,915               13,026                9,337

Effect of dilutive securities:
   Preferred Stock dividends                      105                 105                  315                 316
                                              -------            --------             --------             -------

Numerator for diluted earnings per
   share-income available to
   common stockholders after
   assumed conversions                         $5,714              $4,020              $13,341             $ 9,653
                                               ======              ======              =======             =======

Denominator:

Denominator for basic earnings per
   share--weighted-average shares               18,762              18,220               18,609             18,187
                                                ------              ------               ------             ------

Effect of dilutive securities:
   Employee stock options                          737                 922                 637                 900
   Convertible Preferred Stock                     900                 904                 900                 904
                                              --------            --------            --------           ---------

Dilutive potential Common Shares                 1,637               1,826                1,537              1,804
                                               -------             -------             --------           --------

   Denominator for diluted earnings
      per share--adjusted weighted-average
      shares and assumed conversions            20,399              20,046               20,146             19,991
                                                ======              ======               ======             ======

Basic Earnings per Share (1):                    $0.30               $0.21                $0.70              $0.51
                                                 =====               =====                =====              =====

Diluted Earnings per Share (1) (2):              $0.28               $0.20                $0.66              $0.48
                                                 =====               =====                =====              =====

<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.

(2)    Employee  stock options to purchase  123,250  shares at December 31, 1999
       and 500 shares at December  31, 1998 of Class A and Class B Common  Stock
       are not included in the computation of diluted earnings per share because
       their exercise price was greater than the average market price during the
       quarter and as such are considered anti-dilutive.

</FN>

</TABLE>

                                       8
<PAGE>


NOTE D - SEGMENT  FINANCIAL  INFORMATION


         The reportable segments of the Company are branded products,  specialty
generics,  specialty materials and manufacturing and contract services.  Segment
operating  results are measured  based on income  before taxes.  Each  segment's
operating  results  are  determined  based  on its  direct  expenses.  Corporate
expenses  for shared  services  and  research  and  development  are  managed as
separate  cost  centers.  The  majority  of the  revenues in  manufacturing  and
contract services are intersegment revenues between that segment and the branded
products and specialty generics segments.

<TABLE>
<CAPTION>


                                                                              Mfg. &      Corporate
                                     Branded     Specialty    Specialty     Contract     Expenses and       All
                                    Products     Generics      Material     Services     Eliminations      Other      Consolidated
                                    --------     --------      --------     --------     ------------      -----      ------------

For the Three Months Ended
December 31, 1999  ($ in 000's)
-------------------------------
<S>                                 <C>         <C>           <C>         <C>            <C>            <C>
Revenues                               $7,602      $25,458     $ 4,652      $12,306         $(11,287)      $ 61           $38,792
Depreciation and amortization              17           37          35          504              601         10             1,204
Income before income taxes              1,884       12,518       1,055          581           (6,718)      (108)            9,212
Capital expenditures                        6           66          90        4,969                -          -             5,131


For the Three Months Ended
December 31, 1998  ($ in 000's)
-------------------------------
Revenues                                    -       22,861       3,090        9,165           (8,192)        98            27,022
Depreciation and amortization               -           19          19          365               33          9               445
Income before income taxes               (434)      10,789         377           96           (4,434)        60             6,454
Capital expenditures                        -           22          66        1,932                -          -             2,020


For the Nine Months Ended
December 31, 1999 ($ in 000's)
------------------------------
Revenues                               14,812       77,133      13,014       34,049          (31,651)       239           107,596
Depreciation and amortization              43          100         103        1,295            1,656         26             3,223
Income before income taxes              2,310       35,300       2,819          926          (20,067)       225            21,513
Total assets                            7,305       25,507           -       45,793           49,482      8,352           136,439
Capital expenditures                       40          268         129       10,667                -          -            11,104


For the Nine Months Ended
December 31, 1998  ($ in 000's)
-------------------------------
Revenues                                    -       65,808      10,116       22,035          (19,156)       294            79,097
Depreciation and amortization               -           54          60        1,078              102         23             1,317
Income before income taxes               (434)      28,178       1,520         (605)         (13,324)       225            15,560
Total assets                                -       15,624       6,557       49,230            5,106      1,440            77,957
Capital expenditures                        -           37          90        3,790                -          -             3,917

</TABLE>


                                       9
<PAGE>

NOTE E - LONG-TERM  DEBT

         In December 1999, the Company  amended its "Revolving  Note"  agreement
with LaSalle  National Bank to extend the "Revolving  Credit Maturity Date" from
October 15,  2000 to October 15,  2002.  All other terms and  conditions  of the
agreement remained the same.


NOTE F - SUBSEQUENT  EVENT

         Subsequent to December 31, 1999,  the Company  received an  arbitration
award  related to a breach of contract.  The terms of the contract  provided for
private  binding  arbitration  between the parties which resulted in the Company
receiving an award of  approximately  $3.7 million,  net of applicable taxes and
related  expenses/reimbursements.  The award will be reflected in the  financial
statements for the fourth quarter and fiscal year ending March 31, 2000.

         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 ($ in 000's)

         Revenues.  Consolidated  net revenues  for the third  quarter of fiscal
2000 ended December 31, 1999 increased $11.8 million,  or 44%, and  year-to-date
consolidated net revenues increased $28.5 million, or 36%, over the same periods
last year. The increase in revenues after elimination of inter-segment revenues,
was due to higher sales in the Company's three marketing segments ($ in 000's):

                                  Quarter                     Year-to-Date
                           ---------------------        ------------------------
                                       Increase                        Increase
                                       vs. Prior                      vs. Prior
                           Revenues       Year          Revenues         Year
                           --------    ---------        --------       ---------
    Branded Products        $ 7,602      $ 7,602        $ 14,812        $14,812
    Specialty Generics       25,458        2,597          77,133         11,325
    Specialty Materials       4,477        1,487          12,725          2,898
    All other                 1,255           84           2,926           (536)
                           --------   ----------      ----------     ----------
         Total              $38,792      $11,770        $107,596        $28,499
                            =======      =======        ========        =======


         Branded product sales through the Company's Ther-Rx  subsidiary are all
incremental  to the prior year given the  start-up of the  business  late in the
fourth  quarter of last  fiscal  year.  The branded  business  has been built by
acquiring   products  with  established  brand  name  recognition  and  existing
distribution  and through the  introduction  of internally  developed  products.
Acquired products include Micro-K(R) Extencaps,  a potassium chloride supplement
that  Ther-Rx  began  selling  at the  beginning  of the  fiscal  year,  and the
PreCare(R) prenatal caplet that was acquired in August.  Ther-Rx also introduced
three internally  developed products during the year under the PreCare(R) family
of womens'  health  care  pharmaceuticals.  These  products  include  PreCare(R)
Chewable,  a chewable  prenatal vitamin;  PremesisRx(TM),  a product designed to
reduce  pregnancy  related nausea;  and PreCare(R)  Conceive(TM),  a nutritional
preconception  supplement  specifically  designed  for use by both men and women
prior  to  conception.  The  Company  plans to  continue  to  pursue  a  product
development  strategy  focused  on  womens'  health  care and  expects to launch
additional products in the coming months.

         Specialty   generic  sales  through  the  Company's  ETHEX   subsidiary
increased  for the quarter  and  year-to-date  due to new product  introductions
($1.1 and $2.7  million,  respectively),  higher  volume ($.9 and $5.1  million,
respectively) and price increases ($.6 and $3.5 million, respectively).

         Specialty  materials  sales  through the  Company's  Particle  Dynamics
subsidiary increased for the quarter by $1.6 million, or 51% and year-to-date by
$2.9 million,  or 29%, due  primarily to higher  volume on an expanded  customer
base.

         Costs  and  Expenses.  Manufacturing  costs  as a  percent  of  revenue
declined  for the  quarter  and  year-to-date  due to the  effects of  favorable
pricing and product mix. The improvement in product mix reflects the increase in
the relative contribution of higher margin brand sales and the decrease in lower
margin generic  sales.  For the quarter,  manufacturing  costs declined to 41.8%
from 50.0% in the prior year and for the  year-to-date  to 45.0% from 54.8% last
year. The components of the change are shown in the following table:

                                                        % Revenues
                                               ----------------------------
                                               Quarter         Year-to-Date
                                               -------         ------------
       FY 99 Manufacturing Costs                50.0%             54.8%
       Change due to:
          Product Volume and Mix                (7.1)             (7.7)
          Pricing                               (3.1)             (3.1)
          Cost Changes                           2.0               1.0
                                               -----             -----
       FY 00 Manufacturing Costs                41.8%             45.0%
                                                ====              ====

         Research and development expense increased $.5 million, or 31%, for the
quarter and $1.1  million,  or 22%,  for the  year-to-date  compared to the same
periods of the prior  year.  The  increase  in  expense  in both  periods is due
primarily to an increase in the number of clinical testing programs in which the
Company is involved.

         Selling and administrative expenses increased $4.7 million, or 82%, for
the quarter and $13 million,  or 81%, for the year-to-date  compared to the same
periods of the prior year.  The increase in both periods is due primarily to the
Company's  investment in  establishing  the sales force for its Ther-Rx  branded
products marketing  division.  Selling expenses associated with this effort were
$4 million for the quarter and $9.2  million for the  year-to-date.  Selling and
marketing  expenses in ETHEX  increased  $.3  million  and $1.7  million for the
quarter and year-to-date, respectively.

         Amortization  expense  increased  $.6  million for the quarter and $1.6
million for the  year-to-date due to the amortization of product rights acquired
in March 1999 and August 1999.

         Interest expense, net of interest income,  increased $.5 million in the
quarter  and is up  $1.8  million  for the  year-to-date  on  higher  borrowings
incurred to finance product acquisitions.

         Net Income.  As a result of the  factors  described  above,  net income
improved $1.7 million,  or 42%, to $5.7 million for the quarter ending  December
31,  1999  compared to the same  period  last year.  For the nine  months  ended
December 31, 1999,  net income  improved $3.7 million,  or 38%, to $13.3 million
compared to the same period of the prior year.

         (b) Liquidity and Capital Resources
             -------------------------------

         Cashflow.  Cash provided by operating  activities was $13.6 million for
the first nine months of fiscal 2000, an increase of $6.0 million,  or 80%, over
the first nine  months of fiscal  1999.  The  increase  in  operating  cash flow
compared with last year was due to an increase in net income before depreciation
and amortization of $5.6 million and the receipt of a $13.3 million  arbitration
award.  These increases were partially offset by a $12.6 million increase in the
net use of working  capital over the same period last year.  The increase in the
Company's  working  capital  requirement  relates  primarily to higher  accounts
receivable,  ($9.6 million)  associated  with sales growth and the effect of new
product  introductions in Ther-Rx and ETHEX. In addition,  the Company's accrued
income tax  liability  declined by $5.3  million  from last  year-end due to the
taxes paid in the first quarter of this year in connection  with the arbitration
award recorded in fiscal 1999.

         Investing  activities for the first nine months of fiscal 2000 included
cash outlays for capital  expenditures of $11.1 million and product acquisitions
of $3 million,  partially offset by cash provided by the sale of $7.5 million of
marketable  securities.  Capital  expenditures  were  primarily  for  production
equipment,  laboratory  improvements  and the upgrade of the Company's  business
software  and network  systems.  The Company  acquired the  worldwide  rights to
PreCare(R) in August for  approximately  $8.5 million,  consisting of $3 million
cash,  $4.5  million  Class A Common  Stock and a $1  million  note.  Marketable
securities were sold to pay down long-term debt and fund these expenditures.

         Financing  activities  included  reduction  of  long-term  debt of $9.6
million  and  additional  borrowings  of $2  million  to  fund  working  capital
requirements and additional capital expenditures.

         The Company  believes that existing cash,  together with cash generated
from operating activities and funds available under its credit facility, will be
adequate to fund  operating  activities  for the presently  foreseeable  future,
including  the  payment  of  short-term  and  long-term   obligations,   capital
improvements,  product  development  activities  and the  expansion of marketing
capabilities for the brand pharmaceutical business.

         Balance Sheet and Ratios.  The following  table shows selected  balance
sheet data and financial ratios as of December 31 and year-end March 31, 1999:

                                                 December 1999      March 1999
                                                 -------------      ----------
             ($ in 000's)
            Working capital                          $37,526           $43,112
            Long-term debt                            23,875            31,490
            Shareholders' equity                      86,765            67,548

            Working capital ratio                       2.6               2.6
            Long-term debt to equity                     .3                .5


         Working capital  decreased $5.6 million during the first nine months of
fiscal 2000 compared with the balance at the end of fiscal 1999.  Current assets
decreased  $8.9  million,  or 13%,  while  current  liabilities  decreased  $3.3
million,  or 13%.  The  decrease  in  current  assets was due  primarily  to the
collection  of the $13.3  million  arbitration  award,  which was used to reduce
long-term debt.  Current  liabilities  decreased due primarily to a $5.3 million
reduction  in  accrued  income  taxes  resulting  from  the  taxes  paid  on the
arbitration award in the first quarter.

         The  long-term  debt to equity  ratio  improved  during  the first nine
months of fiscal 2000 due to the $7.6 million net  reduction  in long-term  debt
and the increase in  shareholders'  equity  attributable  to the  Company's  net
income for the period.

         Inflation.  Although  at  reduced  levels  in recent  years,  inflation
continues to apply upward pressure on the cost of goods and services used by the
Company.  However,  the Company believes that the net effect of inflation on its
operations  was  minimal  during the first nine months of fiscal 2000 and fiscal
1999.  In  addition,  changes  in the mix of  products  sold and the  effect  of
competition  have made a comparison of changes in selling prices less meaningful
relative  to  changes in the  overall  rate of  inflation  during the first nine
months of fiscal 2000 and fiscal 1999.

         Year 2000 Project.  Like other  companies,  KV  Pharmaceutical  Company
could be adversely  affected if the computer systems the Company,  its suppliers
or customers use do not properly process and calculate date-related  information
and  data  from  the  period   surrounding   and  including   January  1,  2000.
Additionally, this issue could impact non-computer systems and devices including
production  equipment.  While the  Company's  project to assess and  correct Y2K
related  issues has been  completed,  and the  Company has not  experienced  any
significant Y2K related events,  interactions with other companies' systems make
it difficult to conclude there will not be future effects. Consequently, at this
time,  management cannot provide  assurances that the Y2K issue will not have an
impact on the Company's operations.


<PAGE>


Item 3:  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, 1999.

<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  14,  2000                     By:  /s/ Marc S. Hermelin
         ---------------------------                  --------------------------
                                                      Marc S. Hermelin
                                                      Vice Chairman of the Board




Date:   February  14,  2000                       By: /s/ Gerald R. Mitchell
        ----------------------------                  --------------------------
                                                      Gerald R. Mitchell
                                                      Vice President - Finance
                                                      Chief Financial Officer