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 September 30, 1996

                                       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

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

Class A Common Stock, par value $.01 per share            7,311,956
Class B Common Stock, par value $.01 per share            4,516,379
 

<PAGE>
                                     PART I

                              FINANCIAL INFORMATION

                      CONSOLIDATED STATEMENTS OF OPERATIONS

      For the Three Months and Six Months Ended September 30, 1996 and 1995
                                   (Unaudited)

<TABLE>
<CAPTION>


                                                                For the Three                               For the Six
                                                                 Months Ended                              Months Ended
                                                        09/30/96             09/30/95              09/30/96             09/30/95
                                                        --------             --------              --------             --------


<S>                                                    <C>                  <C>                   <C>                  <C>        
Revenues                                               $13,094,448          $11,207,601           $26,162,265          $23,427,704
                                                       -----------          -----------           -----------          -----------

Costs and Expenses:

Manufacturing costs                                      6,641,286            5,571,139            13,779,562           12,228,762
Research and development                                 1,193,710            1,074,310             2,356,984            2,119,814
Selling and administrative                               3,546,399            2,998,444             6,833,821            6,154,547
Interest expense                                            36,522              411,386               151,285              727,931
Amortization of intangible
  assets                                                    48,684              192,871                97,367              436,079
                                                        ----------           ----------            ----------           ----------
Total Costs and Expenses                                11,466,601           10,248,150            23,219,019           21,667,133
                                                        ----------           ----------            ----------           ----------

Income before income
  taxes                                                  1,627,847              959,451             2,943,246            1,760,571
Provision for income taxes:
   Current                                                  30,000               30,000                60,000               60,000
   Deferred                                                      -                    -                     -                    -
                                                        ----------           ----------            ----------           ----------
Total                                                       30,000               30,000                60,000               60,000
                                                        ----------           ----------            ----------           ----------

Net Income                                              $1,597,847           $  929,451            $2,883,246           $1,700,571
                                                        ==========           ==========            ==========           ==========

Net Income per Common
  Share (after deducting preferred 
  dividends: $105,438 for the three 
  months ended September 30, 1996 & 
  1995 and $210,876 for the six
  months ended September 30, 1996
  & 1995)                                                    $0.12                $0.07                 $0.22                $0.13
                                                             =====                =====                 =====                =====
</TABLE>



See accompanying notes to Financial Statements


<PAGE>


                   KV PHARMACEUTICAL COMPANY AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                      September 30, 1996 and March 31, 1996
                                   (Unaudited)

                                              09/30/96              03/31/96
                                              --------              --------

ASSETS
Current Assets:
Cash and equivalents                       $  2,376,649          $ 2,038,069
Receivables                                   7,509,115            7,281,459
Inventories                                  10,141,961            8,450,162
Prepaid and other                               248,207              229,358
                                            -----------          -----------
   Total Current Assets                      20,275,932           17,999,048

Net property and equipment                    7,508,259            7,621,217

Goodwill and other                            2,793,631            2,328,190
                                            -----------          -----------

TOTAL ASSETS                                $30,577,822          $27,948,455
                                            ===========          ===========


LIABILITIES
Current Liabilities:
Current maturities of long-term debt      $     512,284          $   712,328
Accounts payable                              1,947,632            2,068,265
Accrued liabilities                           1,242,297            1,165,506
                                            -----------          -----------
  Total Current Liabilities                   3,702,213            3,946,099

Long-term debt                                2,496,563            2,541,216
Other                                           912,275              911,230
                                            -----------          -----------
  Total Liabilities                           7,111,051            7,398,545
                                            -----------          -----------

Commitments and contingencies

SHAREHOLDERS' EQUITY
Preferred Stock                                   2,410                2,410
Class A common stock                             73,287               71,207
Class B common stock                             45,471               47,474
Additional paid-in capital                   30,269,464           30,235,926
Retained deficit                             (6,868,908)          (9,752,154)
Less cost of Class A and Class B
  common stock in treasury                      (54,953)             (54,953)
                                            -----------          ----------- 
TOTAL SHAREHOLDERS' EQUITY                   23,466,771           20,549,910
                                            -----------          -----------

TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY                        $30,577,822          $27,948,455
                                            ===========          ===========

See accompanying notes Financial Statements


<PAGE>



                      CONSOLIDATED STATEMENTS OF CASH FLOW
              For the Six Months Ended September 30, 1996 and 1995
                                   (Unaudited)

                                                        1996            1995
                                                      --------        --------
OPERATING ACTIVITIES
Net Income                                        $  2,883,246     $  1,700,571

Adjustments to reconcile net income to net
  cash provided by operating activities:
  Depreciation and amortization                        792,467        1,122,917

Changes in operating assets and liabilities:
  Increase in receivables                             (227,656)      (1,147,030)
Net increase in inventories and
  other current assets                              (1,710,648)      (2,305,355)
Increase (decrease) in accounts payable and
  accrued liabilities                                  (43,842)         568,275
Increase in other                                        1,045           71,070
                                                   -----------     ------------
NET CASH PROVIDED BY
  OPERATING ACTIVITIES                               1,694,612           10,448
                                                   -----------     ------------

INVESTING ACTIVITIES
  Purchase of property and equipment, net             (582,143)        (413,002)

  Other, net                                          (562,807)        (349,393)
                                                   -----------     ------------ 

NET CASH USED IN INVESTING
  ACTIVITIES                                        (1,144,950)        (762,395)
                                                   -----------     ------------ 

FINANCING ACTIVITIES
  Proceeds from credit facilities                            -       14,994,880
  Repayment of credit facilities                             -      (21,473,311)
  Proceeds from term loan facility                           -        6,839,411
  Principal payments on long-term debt                (244,697)        (664,917)
  Exercise of common stock options                      33,615          200,124
                                                   -----------     ------------
NET CASH USED IN
FINANCING ACTIVITIES                                  (211,082)        (103,813)
                                                   -----------     ------------ 

INCREASE (DECREASE) IN CASH
  AND CASH EQUIVALENTS                                 338,580         (855,760)
Cash and cash equivalents
  at beginning of year                               2,038,069        1,075,713
                                                   -----------     ------------
CASH AND CASH EQUIVALENTS
  AT END OF PERIOD                                 $ 2,376,649     $    219,953
                                                   ===========     ============


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,  1996  filed  with the
Securities and Exchange 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.

     Certain  reclassifications  have been made to the March 31, 1996  financial
statements   to  conform  to  the  September   30,  1996   financial   statement
presentation. These reclassifications had no effect on net earnings.

NOTE B  -  EARNINGS PER SHARE

     Net income per common  share is  computed  by  dividing  net  income,  less
preferred dividends,  by the weighted average number of common shares and common
share  equivalents  (if  dilutive)  outstanding  during  the  period.  Preferred
dividends used in this  calculation for the  three-month  and six-month  periods
ended  September  30, 1996 and 1995 were  $105,438 and  $210,876,  respectively.
Undeclared and unaccrued  cumulative  preferred  dividends at September 30, 1996
and 1995 were $2,098,212 and $1,676,460,  respectively. Common share equivalents
consist  of those  common  shares  that  would be issued  upon the  exercise  of
outstanding  stock  options.  The weighted  average number of shares used in the
computations were 12,034,886 and 11,740,305 for the quarters ended September 30,
1996 and 1995,  respectively,  and  12,060,398  and 11,682,632 for the six-month
periods ended September 30, 1996 and 1995, respectively.


<PAGE>


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 second  quarter  of fiscal  1997
totaled  $13.1  million,  compared to $11.2  million  for the second  quarter of
fiscal 1996,  an increase of $1.9  million,  or 17% greater than the same period
last year. Year-to-date consolidated revenues were $26.2 million, an increase of
$2.7  million or 12%,  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  by ETHEX from  sales of new and  existing
products.  ETHEX sales  increased by $1.1 million,  or 13% in the second quarter
and were up $2.0 million,  or 12% for the year-to-date  over the same periods of
the prior year.  ETHEX sales accounted for 70% of  consolidated  revenues in the
second quarter and have contributed 72% of total revenues for the  year-to-date.
Particle Dynamics and Contract  Services  revenues  increased $.6 million or 31%
and $.2 million or 19% respectively for the second quarter of fiscal 1997. These
increases are attributed to increased sales volume.

     COSTS AND EXPENSES.  Manufacturing  costs  increased as a percentage of net
sales to 51% in the quarter ended September 30, 1996 from 50% in the same period
last year. Year-to-date  manufacturing costs as a percent of net sales increased
to 53%  from  52% for  the  six  months  ended  September  30,  1996  and  1995,
respectively.  These increases were primarily attributable to changes in product
mix.

     Research and development costs increased $.1 million or 11% for the quarter
ended  September  30,  1996,  compared  to the same  quarter of the prior  year.
Year-to-date,  these costs increased $.2 million,  or 11%,  compared to the same
period of the  prior  year.  These  increases  are  primarily  due to  increased
personnel  and supply costs to support  continuing  research  into advanced drug
delivery technologies. 

     Selling and  administrative  expense increased $.6 million,  or 20% for the
quarter  ended  September  30,  1996,  compared  to the same period of the prior
fiscal  year but  remained  constant  at 27% as a  percent  of  total  revenues.
Year-to-date selling and administrative  expenses increased $.7 million, or 12%,
over the same  period  last year but  remained  constant  at 26% as a percent of
total revenues.  Increased  expenditures  are primarily  related to higher ETHEX
marketing,  selling and  administrative  support costs  associated  with the new
product  introductions  and expansion of ETHEX.  

<PAGE>

     Interest  expense  decreased  $.4  million  for the second  quarter and $.6
million for the six-month period ended September 30, 1996,  compared to the same
period of the prior fiscal year.  The  decrease  resulted  from a lower level of
borrowing during the first two quarters of fiscal 1997.

     Amortization of intangible  assets  decreased $.1 million,  or 75%, for the
quarter  ended  September  30,  1996,  compared to the same quarter of the prior
fiscal year.  Year-to-date,  these costs decreased $.3 million, or 78%, compared
to the same period of the prior fiscal year. These decreases are attributable to
reimbursements received in fiscal 1996 for intangible costs.

     For the six months  ended  September  30,  1996 and 1995 the  Company had a
current  provision for income taxes of $60,000 based on the alternative  minimum
tax, but  otherwise  made no provision for income taxes as a result of available
net operating loss carryforwards.

     NET INCOME. As a result of the factors described above, net income improved
$.7 million,  or 72% to $1.6  million for the second  quarter of fiscal 1997 and
year-to-date  net income  improved  $1.2  million,  or 70%  compared to the same
period of the prior year.

(b)  Liquidity and Capital Resources 

     The following  table sets forth selected  balance sheet ratios at September
30, 1996, March 31, 1996 and September 30, 1995.

                                           09/30/96    03/31/96    09/30/95
                                           --------    --------    --------

   Working Capital Ratio                   5.5 to 1    4.6 to 1    2.8 to 1 
   
   Debt to Debt Plus  Equity               .11 to 1    .14 to 1    .52 to 1
   
   Total Liabilities to Equity             .30 to 1    .36 to 1    1.5 to 1



     During the quarter ended September 30, 1996, working capital increased $1.5
million, or 10%, to $16.6 million while cash and cash equivalents  increased $.8
million.  Working  capital for the six months ended September 30, 1996 increased
$2.5 million, or 18%. Net cash provided from operations of $1.7 million included
an increase in accounts  receivables of $.2 million  principally  from increased
sales  volume from ETHEX  Corporation  and an increase  in  inventories  of $1.7
million to support the additional sales volume and seasonal business. Borrowings
reflected a decrease of $.2 million,  resulting from the application of existing
cash and funds provided by profitable  operations to indebtedness.  The ratio of
current  assets to current  liabilities  was 5.5 to 1 as of September  30, 1996,
compared to 2.8 to 1 as of September 30, 1995.

<PAGE>

     The debt to debt-plus-equity and total liabilities to equity ratios for the
first six months of fiscal  1997  improved  because of the impact of  profitable
operations.

     Investing  activities for fiscal 1997 reflected capital expenditures of $.6
million and net expenditures  for other assets of $.6 million,  which funds were
provided from operations.

     The Company's cash and cash  equivalents on hand at September 30, 1996 were
$2.4 million. In addition,  the Company currently has in place a credit facility
with Foothill Capital Corporation under which it has the ability to borrow up to
$17.5 million. This credit facility consists of a revolving loan, a term loan, a
capital  equipment  loan facility and letters of credit to support the Company's
outstanding industrial revenue bond and other 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 is continuing to transition  its revenue base from one based on
lower margin, highly competitive, short-term contract manufacturing to one based
on  higher  margin,  technology  distinguished  generic  products,  which  it is
focusing on marketing through ETHEX Corporation,  as well as advanced technology
drug delivery  products to be marketed and co-marketed under long term marketing
agreements and ventures. These advanced technology products are the subject of a
number of long-term business  arrangements and have  differentiated and improved
benefits derived from KV's drug delivery system technologies. For the most part,
these  products  can be produced  with  existing  manufacturing  processes.  The
Company  expects  to  continue  a  relatively  high  level of  expenditures  and
investment  for  research,  clinical  and  regulatory  efforts  relating  to the
development  and  commercialization  of  proprietary  new  products and advanced
technology  products and their  approval for  marketing. 

     The Company has and is  continuing  to  implement  strategies  to introduce
additional  products  through its ETHEX  subsidiary  and  de-emphasize  contract
services. This move to directly market its own technology distinguished generics
has allowed the Company to rely less upon the  dependence of its  pharmaceutical
marketing  clients  for  growth  and to shift  its  revenue  growth  internally,
principally  through ETHEX and the Company's licensing  activities.  The Company
believes funds generated from operating  activities and existing cash,  together
with the funds available under its credit facility, will be adequate to fund the
Company's  requirements for short term needs due to the continued level of sales
growth being experienced.


<PAGE>


PART II.  OTHER INFORMATION

Item 4:  Submission of Matters to a Vote of Security Holders.

     On August 20, 1996, at the annual meeting of  shareholders  of the Company,
the shareholders elected Marc S. Hermelin as a Class A Director for a three-year
term. The number of votes cast in favor of Marc S. Hermelin (taking into account
the fact that each share of Class A common stock has one-twentieth of a vote per
share  and  each  share  of Class B common  stock  has one vote per  share)  was
4,284,202.  The number of votes as to which  authority  was withheld was 23,388.
The other directors of the Company whose terms of office as directors  continued
after the meeting are:  Victor M. Hermelin,  Alan G. Johnson and Garnet E. Peck,
Ph.D.  

     The  shareholders  approved  the  KV  Pharmaceutical  Company  Amended  and
Restated 1991  Incentive  Stock Option Plan by a vote of 3,118,706  for,  86,002
against, 27,971 abstaining and 950,805 broker non-votes.

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

         a)  Exhibits - See Exhibit Index on page 11
         b)  The Company did not file any reports on Form 8-K during the quarter
             ended September 30, 1996.

<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:  November 13, 1996                        /s/ Marc S. Hermelin
                                                --------------------
                                                Marc S. Hermelin
                                                Vice Chairman of the Board




Date:  November 13, 1996                        /s/ Gerald R. Mitchell
                                                ----------------------
                                                Gerald R. Mitchell
                                                Vice President - Finance
                                                Chief Financial Officer

<PAGE>



                                  EXHIBIT INDEX



Exhibit Number                   Description                          Page

      11                  Computation of Earnings                     12-13
                          Per Share Calculation. Filed
                          Herewith.

      27                  Financial Data Schedule
                          (filed in EDGAR version only)