|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, 2001.
|--- | -------------------------------------------------------------------

||_| | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
         For the transition period from  to
|--- | -------------------------------------------------------------------------------------------------------------------------------------

|Commission file number:
 1-9601


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

|Delaware
               (State or Other Jurisdiction of
                Incorporation or Organization) | 43-0618919
     (I.R.S. Employer 
    Identification No.)
|------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------

|2503 South Hanley Road
                    St. Louis, Missouri
           (Address of Principal Executive Offices) | 63144
     (ZIP Code)
|------------------------------------------------------------------------------------------------------------------ | ---------------------

|(314)
645-6600 (Registrant's Telephone Number, Including Area Code)


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 Classof Common Stock | Number of Shares Outstanding as of this Report Date
|----------------------------- | ---------------------------------------------------

|Class A Common Stock, par value $.01 per share | 20,072,923
|---------------------------------------------- | ----------

|Class B Common Stock, par value $.01 per share | 10,657,619
|---------------------------------------------- | ----------

|PART I.FINANCIAL INFORMATION
K-V PHARMACEUTICAL
COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)(In thousands, except per share data)
|------------------------------------------------------------------------------------------------------------------------------------------------------------

`Three Months Ended     Nine Months Ended
                                           December 31,          December 31,
                                       -------------------   -------------------
                                          2001      2000       2001       2000
                                       ---------  --------   --------   --------

Net Revenues                           $52,725    $43,777    $153,146   $127,887
                                       -------    -------    --------   --------
Costs and Expenses:
   Manufacturing costs                  19,306     17,015      58,133     51,112
   Research and development              3,019      2,328       7,977      6,615
   Selling and administrative           16,941     15,341      52,390     43,826
   Amortization of
     intangible assets                     675        597       1,986      1,779
                                      --------   --------    --------   --------
Total costs and expenses                39,941     35,281     120,486    103,332
                                      --------   --------    --------   --------

Operating income                        12,784      8,496      32,660     24,555
                                      --------   --------    --------   --------
Other income (expense):
   Interest expense                        (94)      (189)       (303)      (878)
   Interest and other income                92         72         335        139
                                      --------   --------    --------   --------
Total other income (expense), net           (2)      (117)         32       (739)
                                      --------   --------    --------   --------

Income before income taxes              12,782      8,379      32,692     23,816
Provision for income taxes               4,634      3,008      11,851      8,670
                                      --------   --------    --------   --------

Net Income                              $8,148     $5,371     $20,841    $15,146
                                      ========   ========    ========   ========

Net Income per Common Share-Basic        $0.26      $0.18       $0.69      $0.51
                                      ========   ========    ========   ========

Net Income per Common Share-Diluted      $0.25      $0.17       $0.65      $0.47
                                      ========   ========    ========   ========


See Accompanying Notes to Consolidated Financial Statements.`

|K-V PHARMACEUTICAL
COMPANY AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS(In thousands, except share data)
|---------------------------------------------------------------------------------------------------------

`December 31, 2001    March 31,2001
                                              -----------------    -------------
                                                  (unaudited)
ASSETS
------

Current Assets:
   Cash and cash equivalents                       $  21,151          $    4,128
   Receivables, less allowance for
     doubtful accounts of $432 and
     $448 at December 31, 2001 and
     March 31, 2001, respectively                     38,676              26,259
   Inventories                                        32,129              32,211
   Prepaid and other assets                            1,486               3,804
   Deferred income taxes                               5,150               1,644
                                                 -----------          ----------
      Total Current Assets                            98,592              68,046

Property and equipment, less
  accumulated depreciation and
  amortization                                        39,490              36,847
Intangibles and other assets,
  net of amortization                                 46,163              46,524
                                                  ----------          ----------

TOTAL  ASSETS                                       $184,245            $151,417
                                                    ========            ========

LIABILITIES
-----------
Current Liabilities:
   Accounts payable                                $  12,886          $    6,349
   Accrued liabilities                                14,708              10,067
   Current maturities of long-term debt                  478                 712
                                                ------------        ------------
     Total Current Liabilities                        28,072              17,128

Long-term debt                                         4,686               5,080
Other long-term liabilities                            2,759               2,534
Deferred income taxes                                  1,163                 733
                                                ------------        ------------
TOTAL  LIABILITIES                                    36,680              25,475
                                                  ----------          ----------

Commitments and Contingencies

SHAREHOLDERS' EQUITY
--------------------

7% Cumulative Convertible Preferred
  Stock, $.01 par value; $25.00 stated
  and liquidation value; 840,000 shares
  authorized; issued and outstanding -
  40,000 and 240,000 shares at
  December 31, 2001 and March 31, 2001,
  respectively (convertible into Class A
  shares at a ratio of 5.625 to one)                       -                   2

Class A and Class B Common Stock, $.01
  par value; 150,000,000 and 75,000,000
  shares authorized, respectively;
  Class A-issued 20,126,241 and 18,896,945
  at December 31, 2001 and March 31, 2001,
  respectively                                           201                 189
  Class B-issued 10,711,047 and 10,663,574
  at December 31, 2001 and March 31, 2001,
  respectively (convertible into Class A
  shares on a one-for-one basis)                         107                 107

Additional paid-in capital                            46,617              45,792
Retained earnings                                    100,695              79,907
Less:  Treasury Stock, 53,318 shares of
  Class A and 53,428 shares of Class B
  Common Stock at December 31, 2001
  and March 31, 2001                                     (55)                (55)
                                                   ---------           ---------
TOTAL  SHAREHOLDERS'  EQUITY                         147,565             125,942
                                                   ---------           ---------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY          $184,245            $151,417
                                                    ========            ========


See Accompanying Notes to Consolidated Financial Statements.`

|K-V PHARMACEUTICAL COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (Unaudited)(In thousands)
|---------------------------------------------------------------------------------------------------------------------------------------------

`Nine Months Ended
                                                            December 31,
                                                 -----------------------------
                                                    2001                2000
                                                 ---------           ---------
Operating Activities
Net income                                       $  20,841           $  15,146
Adjustments to reconcile
   net income to net
   cash provided by operating
   activities:
   Depreciation, amortization and
   other non-cash charges                            4,861               4,266
   Change in deferred taxes                         (3,076)                304
   Change in deferred compensation                     225                 192
Changes in operating assets and
   liabilities:
   Increase in receivables, net                    (12,417)             (7,883)
   Decrease (increase) in inventories                   82              (1,432)
   Decrease (increase) in prepaids
   and other assets                                    693              (2,033)
   Increase (decrease) in accounts
   payable and accrued liabilities                  11,178              (4,136)
                                               -----------         -----------

  Net Cash Provided By Operating
  Activities                                        22,387               4,424
                                               -----------         -----------

Investing Activities
   Purchase of property and
   equipment, net                                   (5,518)             (6,556)
                                               -----------         -----------

Net Cash Used In Investing
   Activities                                       (5,518)             (6,556)
                                               -----------         -----------
Financing Activities
   Principal payments on long-term debt               (628)             (6,830)
   Proceeds from credit facility                         -               5,000
   Dividends paid on Preferred Stock                   (53)               (315)
   Exercise of Common Stock options                    835               4,799
                                              ------------         -----------

Net Cash Provided By Financing
   Activities                                          154               2,654
                                               -----------         -----------

Increase In Cash and Cash Equivalents               17,023                 522
Cash and Cash Equivalents at:
   Beginning of Year                                 4,128               3,443
                                               -----------         -----------
   End of Period                                $   21,151          $    3,965
                                               ===========          ==========

Non-Cash Investing and Financing
   Activities:
   Term loan refinanced                         $    2,489           $       -


See Accompanying Notes to Consolidated Financial Statements.`

|K-V PHARMACEUTICAL
COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTE A  -  BASIS
OF PRESENTATION

The accompanying  unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial  information and with the  instructions to Form 10-Q and Rule 10-01 of
Regulation  S-X.  Accordingly,  they do not include all of the  information  and
footnotes  required by generally  accepted  accounting  principles  for complete
financial statements. In the opinion of Management,  all adjustments (consisting
of only normal recurring accruals)  considered necessary for a fair presentation
have been included. Operating results for the three-month and nine-month periods
ended December 31, 2001 are not  necessarily  indicative of the results that may
be expected for the year ending March 31, 2002. For further information refer to
the  consolidated  financial  statements and footnotes  thereto  included in the
Company's Annual Report on Form 10-K for the year ended March 31, 2001.


NOTE B  - 
INVENTORIES

Inventories consist of the following (in thousands):
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

`December 31, 2001         March 31, 2001
                                 -----------------         --------------
                                    (unaudited)
  Finished goods                       $15,456                  $15,119
  Work-in-process                        3,375                    3,604
  Raw materials                         13,944                   14,076
                                      --------                 --------
                                        32,775                   32,799
  Reserve for obsolescence                (646)                    (588)
                                    ----------               ----------
                                      $ 32,129                 $ 32,211
                                      ========                 ========`

|NOTE C -  CONVERTIBLE
PREFERRED STOCK CONVERSION
During the quarter ended June 30, 2001,  200,000  shares of Convertible
Preferred  Stock  were  converted,  at a  conversion  rate of 5.625  to one,  into
1,125,000 Class A Common Shares.  Undeclared and unaccrued  cumulative preferred
dividends  decreased  to  $365,600  or $9.14 per share on the  remaining  40,000
convertible  preferred  shares  outstanding from the $2.194 million at March 31,
2001.


NOTE D  - 
EARNINGS PER SHARE
The  following  table sets forth the  computation  of basic and diluted
earnings per share (in thousands, except per share data):
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

`Three Months Ended     Nine Months Ended
                                           December 31,            December 31,
                                      ---------------------    -----------------
                                         2001       2000        2001      2000
                                      --------    -------     -------   --------
Numerator:
Net income                              $8,148     $5,371     $20,841    $15,146

Preferred Stock dividends                  (18)      (105)        (53)      (315)
                                       -------   --------     -------   --------

Numerator for basic earnings per
   share-income available to common
   shareholders                          8,130      5,266      20,788     14,831

Effect of dilutive securities:
   Preferred Stock dividends                18        105          53        315
                                      --------   --------    --------   --------

Numerator for diluted earnings per
   share-income available to
   common shareholders after
   assumed conversions                  $8,148     $5,371     $20,841    $15,146
                                        ======     ======     =======    =======

Denominator:
Denominator for basic earnings per
   share-weighted-average shares        30,720     29,200      30,296     28,852
                                       -------    -------     -------    -------

Effect of dilutive securities:
   Stock options                         1,282      1,683       1,278      1,794
   Convertible Preferred Stock             225      1,350         589      1,350
                                      --------    -------   ---------   --------

Dilutive potential Common Shares         1,507      3,033       1,867      3,144
                                      --------    -------    --------   --------

Denominator for diluted earnings
   per share-adjusted weighted-average
   shares and assumed conversions       32,227     32,233      32,163     31,996
                                        ======     ======      ======     ======

Basic Earnings Per Share (1):           $0.26      $0.18       $0.69      $0.51
                                        =====      =====       =====      =====

Diluted Earnings Per Share (1)(2):      $0.25      $0.17       $0.65      $0.47
                                        =====      =====       =====      =====`

|(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)  
When the exercise price for employee stock options is greater than the average
market price of the related stock, the options are considered anti-dilutive and
not included in the computation of diluted earnings per share. At December 31,
2001 and 2000, there were no anti-dilutive shares.

NOTE E  - 
SEGMENT FINANCIAL INFORMATION

The reportable segments of the Company are branded products,  specialty
generics,  specialty  materials  and  contract  services.  Segment  profits  are
measured based on income before taxes and are determined based on each segment's
direct revenues and expenses.  Corporate  general and  administrative  expenses,
amortization and interest  expense,  research and development  expense and other
income,  are  included in the "All  Other"  category  in the  following  segment
information.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

`Mfg. &
Three Months Ended        Branded    Specialty    Specialty  Contract     All
 December 31,            Products     Generics    Materials  Services    Other
--------------           --------     --------    ---------  --------    -----
(in thousands)

Total Revenue      2001   $10,644     $36,521      $4,540   $   943     $   77
                   2000     6,618      32,193       4,083       687        196

Segment Profits    2001     2,234      19,502         929       638    (10,521)
                   2000    (1,439)     17,081       1,038      (175)    (8,126)

Identifiable       2001     7,403      42,752       8,339    41,144     85,765
Assets             2000     7,351      37,066       9,164    36,075     65,743

Property and       2001        15          45          34     1,208        827
Equipment          2000         9           -           -     1,398        546
Additions

Depreciation and   2001        17          19          35       846        773
Amortization       2000         8          56          39       641        691

Nine Months Ended
December 31,
---------------
(in thousands)

Total Revenue      2001   $27,667    $108,697     $14,394    $2,156   $    232
                   2000    15,145      97,569      12,627     2,329        217

Segment Profits    2001     3,164      54,570       2,914       523    (28,479)
                   2000    (6,766)     51,226       3,216      (175)   (23,685)

Property and       2001       280         123         140     3,363      1,612
Equipment          2000       162         197          56     4,197      1,944
Additions

Depreciation and   2001        50          61         109     2,415      2,226
Amortization       2000        69         109         115     2,011      1,962


Three Months Ended
 December 31,                Eliminations    Consolidated
--------------               ------------    ------------
(in thousands)

Total Revenue      2001       $     -        $   52,725
                   2000             -            43,777

Segment Profits    2001             -            12,782
                   2000             -             8,379

Identifiable       2001        (1,158)          184,245
Assets             2000        (1,158)          154,241

Property and       2001             -             2,129
Equipment          2000             -             1,953
Additions

Depreciation and   2001             -             1,690
Amortization       2000             -             1,435

Nine Months Ended
December 31,
---------------
(in thousands)

Total Revenue      2001       $     -       $   153,146
                   2000             -           127,887

Segment Profits    2001             -            32,692
                   2000             -            23,816

Property and       2001             -             5,518
Equipment          2000             -             6,556
Additions

Depreciation and   2001             -             4,861
Amortization       2000             -             4,266`

|NOTE F  - 
RECENTLY ISSUED ACCOUNTING STANDARDS

In June 2001, the Financial  Accounting  Standards  Board (FASB) issued
Statement  of  Financial   Accounting   Standards   (SFAS)  No.  141, Business
Combinations,  and No.  142, Goodwill  and Other  Intangible  Assets.  SFAS 141
requires the use of the purchase  method of accounting  and prohibits the use of
the pooling-of-interest method of accounting for business combinations initiated
after June 30, 2001. SFAS 141 also requires that the Company recognize  acquired
intangible  assets apart from  goodwill if the acquired  intangible  assets meet
certain criteria.  SFAS 141 applies to all business combinations initiated after
June 30, 2001 and for purchase business combinations  completed on or after July
1,  2001.  It also  requires,  upon  adoption  of SFAS  142,  that  the  Company
reclassify the carrying  amounts of intangible  assets and goodwill based on the
criteria in SFAS 141.

SFAS 142 addresses  accounting for intangible  assets that are acquired
individually  or with a group  of other  assets  (but not  those  acquired  in a
business  combination) at acquisition.  The statement also addresses  accounting
for  goodwill  and other  intangible  assets  after  they  have  been  initially
recognized in the financial statements.  SFAS 142 requires,  among other things,
that  companies  no longer  amortize  goodwill,  but instead  test  goodwill for
impairment at least annually using fair values.  In addition,  SFAS 142 requires
that the Company identify reporting units for the purpose of assessing potential
future  impairments  of goodwill,  reassess  the useful lives of other  existing
recognized  intangible  assets, and cease amortization of intangible assets with
an indefinite  useful life. An intangible  asset with an indefinite  useful life
must be tested at least annually for impairment in accordance  with the guidance
in SFAS 142. SFAS 142 is required to be applied in fiscal years  beginning after
December 15, 2001 to all goodwill and other  intangible  assets recorded at that
date,  regardless  of when those  assets  were  initially  recognized.  SFAS 142
requires the Company to complete a  transitional  goodwill  impairment  test six
months from the date of adoption.  The Company is also  required to reassess the
useful lives of other  intangible  assets within the first interim quarter after
adoption of SFAS 142.

The Company's  previous business  combinations were accounted for using
the  purchase  method.  As of December  31,  2001,  the net  carrying  amount of
goodwill  and  other   intangible   assets  was  $570,000  and  $40.9   million,
respectively. Goodwill relates to an acquisition that occurred prior to June 30,
2001, and amortization will be discontinued in fiscal year 2003. Amortization of
goodwill during the  three-month and nine-month  periods ended December 31, 2001
was  $14,000  and  $42,000,  respectively.  At  this  time,  management  has not
estimated  the extent of  impairment,  if any, of  goodwill  that may need to be
recorded  in  fiscal  2003 and has not made an  assessment  of which  intangible
assets, if any, have indefinite  lives.  Amortization of other intangible assets
during the  three-month  and  nine-month  periods  ended  December  31, 2001 was
$578,000 and $1.7 million, respectively.

In August  2001,  the FASB issued SFAS No.  143, Accounting  for Asset
Retirement  Obligations  and SFAS No.  144,Accounting  for the  Impairment  or
Disposal of Long-Lived  Assets.  SFAS 143  addresses  financial  accounting  and
reporting for obligations  associated with the retirement of tangible long-lived
assets and the associated  asset retirement  costs.  This statement is effective
for fiscal years  beginning  after June 15, 2002.  SFAS 144 addresses  financial
accounting and reporting for the impairment or disposal of long-lived assets. It
supersedes SFAS No. 121, Accounting for the Impairment of Long-Lived Assets and
for  Long-Lived  Assets to be Disposed of, and certain  provisions of Accounting
Principles  Board Opinion No. 30,Reporting the Effects of Disposal of a Segment
of a Business and Extraordinary,  Unusual and Infrequently  Occurring Events and
Transactions,  for the  disposal of a segment of a business.  This  statement is
effective for fiscal years  beginning  after  December 15, 2001. The Company has
not yet  determined  how the  adoption  of SFAS 143 and SFAS 144 will impact its
financial position and results of operations.

NOTE G  - 
CONTINGENCIES

ETHEX  Corporation,  a wholly-owned  subsidiary of the Company,  and K-V
Pharmaceutical Company are defendants in a lawsuit styled,  Healthpoint,  Ltd. v. ETHEX
Corporation.  On September 28, 2001, the jury returned verdicts,  in the form of
answers to special interrogatories,  against ETHEX on certain false advertising,
unfair competition and  misappropriation  claims and awarded damages aggregating
$16.5  million.  The court  will  enter a judgment  after  consideration  of the
post-trial motions.  The court's judgment may then be appealed.  The Company
believes that the jury's  recommended  award is excessive and is not
sufficiently  supported by the facts or the law. The court may or may not accept
the  jury's  verdicts.  The  Company  is  vigorously pursuing post-trial
procedures  to challenge the jury's  findings  and, if necessary,  to appeal any
adverse  judgment that the court may enter.  The Company and its counsel are not
presently  able to predict  the  outcome  of the  matter  and cannot  reasonably
estimate the Company's ultimate liability, if any. Accordingly,  the Company has
not recorded any  contingent  liability on its financial  statements  related to
this matter.

From time to time,  the  Company  becomes  involved  in  various  legal
matters in the ordinary course of business.

NOTE H  - 
REVOLVING CREDIT AGREEMENT

During  December  2001,  the Company  increased  its  revolving  credit
agreement  with  LaSalle  National  Bank to $60 million.  The revised  agreement
provides for the  continuation  of the Company's $40 million  revolving  line of
credit  along with a  supplemental  credit  line of $20  million  for  financing
acquisitions.  These credit facilities expire in October 2004 and December 2002,
respectively.  The revolving  credit lines are unsecured and interest is charged
at the lower of the prime rate or the LIBOR rate plus 150 basis points.

At December 31,  2001,  the Company had $3.6 million in open letters of
credit issued under the credit facilities. The loan agreement includes covenants
that impose minimum levels of earnings before interest,  taxes, depreciation and
amortization,  a maximum funded debt ratio, and a limit on capital  expenditures
and dividend  payments.  As of December 31, 2001,  the Company was in compliance
with all of its covenants.
"Safe Harbor" Statement

The  materials  in this Form 10-Q may contain  various  forward-looking
statements within the meaning of the United States Private Securities Litigation
Reform Act of 1995  ("PSLRA") and which may be based on or include  assumptions,
concerning  the  Company's  operations,   future  results  and  prospects.  Such
statements may be identified by the use of words like "plans",  "expect", "aim",
"believe",  "projects",  "anticipate",  "intend",  "estimate", "will", "should",
"could" and other  expressions  that  indicate  future  events and  trends.  All
statements that address expectations or projections about the future,  including
without limitation,  statements about the Company's strategy for growth, product
development,   market  positions,   expenditures  and  financial  results,   are
forward-looking statements.

All  forward-looking  statements are based on current  expectations and
are subject to risk and  uncertainties.  In  connection  with the "safe  harbor"
provisions,   K-V  provides  the  following  cautionary  statements   identifying
important economic,  political and technology factors which, among others, could
cause the actual results or events to differ  materially from those set forth or
implied by the forward looking statements and related assumptions.

Such  factors  include  (but are not  limited  to) the  following:  (1)
changes in the current and future business environment, including interest rates
and  capital  and  consumer  spending;  (2) the  difficulty  of  predicting  FDA
approvals;  (3) acceptance and demand for new pharmaceutical  products;  (4) the
impact of  competitive  products and pricing;  (5) new product  development  and
launch;  (6) reliance on key strategic  alliances;  (7) the  availability of raw
materials;  (8)  the  regulatory  environment;  (9)  fluctuations  in  operating
results; (10) the difficulty of predicting the pattern of inventory movements by
the  Company's  customers;  (11)  the  impact  of  competitive  response  to the
Company's  efforts  to  leverage  its  brand  power  with  product   innovation,
promotional  programs,  and new  advertising;  and, (12) the risks detailed from
time  to  time  in the  Company's  filings  with  the  Securities  and  Exchange
Commission.

This  discussion of  uncertainties  is by no means  exhaustive,  but is
designed to highlight important factors that may impact the Company's outlook.

Item 2.  Management's  Discussion  and  Analysis  of Results of  Operations  and
         Financial Condition

(a)  Results of Operations

Revenues.  Net  revenues  for  the  quarter  ended  December  31,  2001
increased  $8.9  million,  or 20%, to $52.7  million from $43.8  million for the
corresponding  quarter in the prior year. For the nine months ended December 31,
2001,  net revenues  increased  $25.2  million,  or 20%, to $153.1  million from
$127.9 million for the  corresponding  period in the prior year. The increase in
net revenues for both the quarter and  nine-month  periods was due  primarily to
higher sales of branded products,  specialty  generics,  and specialty  material
products.

Branded product sales increased $4.0 million,  or 61%, to $10.6 million
for the  quarter due to higher  sales of women's  healthcare  products.  For the
nine-month  period,  branded product sales  increased $12.5 million,  or 83%, to
$27.7 million due to increased  sales volume along all product  categories.  The
women's  healthcare  family of products had sales increases of $4.0 million,  or
105%,  and  $9.1  million,  or 93%,  for the  quarter  and  nine-month  periods,
respectively,  due to continued volume-driven increases in market share. Initial
shipments of a new product,  PrimaCare(R),  were made in late December 2001,  with
introduction   planned  for  February   2002.   PrimaCare(R)is  a   prescription
prenatal/postnatal  multivitamin  and mineral  supplement  with essential  fatty
acids. It is the only prescription  product with essential fatty acids specially
designed  to help  provide  nutritional  support  for  women  during  postpartum
recovery and throughout the  childbearing  years.  PrimaCare(R)also helps support
neonatal  development  in  nursing  infants.  Gynazole-1,  a vaginal  antifungal
product  introduced  in the prior  year's  first  fiscal  quarter,  continued to
benefit  from an  increase  in  market  share.  During  the  quarter,  sales  of
Gynazole-1 increased $1.6 million, or 129%, and for the nine-month period, sales
of this product  increased  $3.9  million,  or 140%.  By the end of the quarter,
Gynazole-1  had garnered  11.5% of the  prescription  vaginal cream market.  The
cardiovascular product line sales remained relatively consistent for the quarter
and were up slightly for the nine-month period as customer  inventories returned
to normal levels.

Specialty  generic  product sales  increased  $4.3 million,  or 13%, to
$36.5 million for the quarter and $11.1  million,  or 11%, to $108.7 million for
the nine-month  period.  The increase in specialty generic sales for the quarter
was  attributable  to a $6.7  million  increase in the sales  volume of existing
products coupled with $3.1 million of incremental sales from new products. These
increases  were partially  offset by $5.5 million of product price erosion.  For
the nine-month period, specialty generic sales were impacted by $16.9 million of
increased  sales  volume for existing  products and $5.0 million of  incremental
sales on new products.  The increased sales volume for the nine-month period was
partially  offset by $10.8 million of product price  erosion.  The price erosion
experienced  during both the quarter and nine-month  periods resulted  primarily
from normal and expected competitive pricing pressures on certain products.

Net revenues of specialty material products  increased $.5 million,  or
11%, to $4.5  million for the quarter and  increased  $1.8  million,  or 14%, to
$14.4 million for the  nine-month  period due primarily to sales of new products
and increased sales of existing products.

Costs and Expenses.   Manufacturing costs increased $2.3 million, or 13%,
to $19.3 million for the quarter and $7.0 million,  or 14%, to $58.1 million for
the nine-month period. The increase in manufacturing  costs for both the quarter
and nine-month periods was mainly attributable to the increased level of product
sales.  Manufacturing costs as a percentage of net revenues decreased to 37% and
38%, for the quarter and nine-month periods,  respectively,  compared to 39% and
40%, for the comparative prior quarter and nine-month periods, respectively. The
lower manufacturing cost percentages  resulted primarily from an improved mix in
product sales attributable to higher margin branded products comprising a larger
percentage of net revenues and  manufacturing  efficiencies  caused by increased
production  during the quarter, partially offset by the generic price erosion
described above.  Branded  product sales comprised 20% and 18% of
net revenues for the quarter and nine-month periods,  respectively,  as compared
to 15% and 12% of net  revenues  for  both the  comparative  prior  quarter  and
nine-month  periods,  respectively.  Production  volume  was 20%  higher for the
quarter  and 30% higher for the  nine-month  period  compared  to the prior year
comparative periods.

Research and  development  expenses  increased $.7 million,  or 30%, to
$3.0 million (5.7% of net revenues) for the quarter and $1.4 million, or 21%, to
$8.0 million (5.2% of net revenues) for the nine-month  period.  The increase in
research and development expense for both the quarter and nine-month periods was
due to higher costs associated with clinical testing  connected to the Company's
internal product  development  efforts and higher personnel  expenses related to
expansion of the Company's  research and development  staff. The increase in the
nine-month period was partially offset by $.6 million of non-recurring  payments
made in the prior year's first fiscal quarter related to product  co-development
projects.  The Company plans to continue its new product development efforts and
will continue allocating a high level of expenditures for research, clinical and
regulatory efforts.

Selling and administrative  expenses increased $1.6 million, or 10%, to
$16.9 million for the quarter and $8.6 million, or 20%, to $52.4 million for the
nine-month period. The increase in selling and administrative  expenses for both
the quarter and nine-month  periods was due primarily to an increase in
Company management,  administrative and marketing
personnel costs and higher legal expenses.

Interest expense  decreased $.1 million and $.6 million for the quarter
and nine-month periods, respectively, due to a corresponding reduction in debt.

Net Income.    As a result of the  factors  described  above,  net income
improved  for the quarter by $2.8  million,  or 52%, to $8.1 million and for the
nine-month period by $5.7 million, or 38%, to $20.8 million.

(b)  Liquidity and Capital Resources

The Company's cash and cash  equivalents and working capital were $21.2
million and $70.5 million,  respectively, at December 31, 2001, compared to $4.1
million and $ 50.9  million,  respectively,  at March 31, 2001.  The  increasing
level of product sales  continues to be the primary source of operating  capital
used to  fund  the  Company's  businesses.  The net  cash  flow  from  operating
activities was $22.4 million for the  nine-month  period ended December 31, 2001
compared to $4.4 million for the prior  year's  comparative  nine-month  period.
Operating  cash flow  increased  primarily  as a result of higher net income and
increased  accounts payable.  These increases were partially offset by increased
receivables.  The increase in accounts  payable was  reflective  of higher trade
payables,  which  resulted from the timing of various  material  purchases.  The
increase in  receivables  resulted  primarily from a greater number of specialty
generic product orders being shipped near the end of the quarter.

Capital expenditures of $5.5 million for the nine months ended December
31, 2001 were funded by net cash flows from operating activities.  The Company's
investment in capital  assets was made  primarily for  purchasing  machinery and
equipment to upgrade and expand the Company's  pharmaceutical  manufacturing and
distribution capabilities.

Long-term  debt decreased to $4.7 million at December 31, 2001 compared
to $5.1 million at March 31, 2001. The decrease resulted from principal payments
made during the nine months  ended  December  31, 2001.  In December  2001,  the
Company  refinanced a $2.5 million building  mortgage that was due in June 2002.
The building mortgage bears interest at 7.57% and is due in December 2006.
During  December  2001,  the Company  increased  its  revolving  credit
agreement  with  LaSalle  National  Bank to $60 million.  The revised  agreement
provides for the  continuation  of the Company's $40 million  revolving  line of
credit  along with a  supplemental  credit  line of $20  million  for  financing
acquisitions. The revolving credit lines are unsecured.
The Company believes its cash and cash equivalents balance,  cash flows
from operations and funds available under its credit facilities will be adequate
to fund operating activities for the presently foreseeable future, including the
payment of short-term  and long-term  debt  obligations,  capital  improvements,
product development  activities and expansion of marketing  capabilities for the
branded  pharmaceutical  business.  However,  the Company  continues  to examine
opportunities to expand its business through the acquisition of or investment in
companies, technologies, product rights or other investments that are compatible
with its existing  business.  The Company  intends to use its available  cash to
help in funding any acquisitions or investments. As such, cash has been invested
in  short-term,  highly  liquid  instruments.  The  Company  may also use  funds
available under its credit  facilities,  or financing  sources that subsequently
become   available,   including  the  issuance  of  additional  debt  or  equity
securities, to fund such acquisitions or investments. If the Company was to fund
one or more such acquisitions or investments,  the Company's capital  resources,
financial  condition and results of operations  could be materially  impacted in
future periods.
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 has been minimal during the past three years. In addition, changes in
the mix of products sold and the effect of competition  has made a comparison of
changes in selling  prices  less  meaningful  relative to changes in the overall
rate of inflation over the past three years.

Item 3.  
Variable Rate Risks.
Advances to the Company  under the  Company's  credit  facilities  bear
interest at a rate that varies  consistent  with  increases  or decreases in the
publicly-announced   prime  rate   [and/or  the  LIBOR  rate  with   respect  to
LIBOR-related   loans,  if  any].  A  material  increase  in  such  rates  could
significantly  increase  borrowing  expenses.  The Company did not have any cash
borrowings under the credit facilities at December 31, 2001.

PART II.   -  
OTHER INFORMATION
Item 1.  Legal Proceedings.
ETHEX  Corporation,  a wholly-owned  subsidiary of the Company,  and K-V
Pharmaceutical Company are defendants in a lawsuit styled,  Healthpoint,  Ltd. v. ETHEX
Corporation  pending in federal  court in the  Western  District  of Texas,  San
Antonio Division. The suit was filed by Healthpoint, Ltd. on August 3, 2001, and
was later joined by affiliated companies. In general, the plaintiffs allege that
ETHEX's promotion of its Ethezyme(TM) product as an alternative to Healthpoint's
Accuzyme(R)  product  resulted in false and misleading  statements under various
federal and state laws, and constitutes unfair competition and misappropriation.
The case went to a jury trial on September 10, 2001,  and on September 28, 2001,
the jury returned verdicts,  in the form of answers to special  interrogatories,
against   ETHEX  on  certain   false   advertising,   unfair   competition   and
misappropriation claims and awarded damages aggregating $16.5 million. The court
may or may not accept the jury's verdicts. The court will enter a judgment after
consideration of post-trial motions.  The court's judgment may then be appealed.
The  Company  believes  that the  jury's  recommended  award is
excessive and is not sufficiently supported by the facts or the law. The Company
is  vigorously pursuing post-trial  procedures  to  challenge  the jury's
findings  and, if necessary,  to appeal any adverse  judgment that the court may
enter.
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|SIGNATURES

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

| | K-V PHARMACEUTICAL COMPANY
| | --------------------------

|Date:    February 14, 2002 | By:  /s/ Marc S. Hermelin
                                      Marc S. Hermelin
                                            Vice Chairman of the Board 
                                      (Principal Executive Officer)
|-------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Date:    February 14, 2002 | By:  /s/ Gerald R. Mitchell
                                      Gerald R. Mitchell
                                            Vice President, Treasurer and 
                                            Chief Financial Officer 
                                      (Principal Financial and
                                             Accounting Officer)
|-------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------