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 June 30, 1998

                                       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          11,791,516
Class B Common Stock, par value $.01 per share           6,394,861

<PAGE>

                                     PART I

                              FINANCIAL INFORMATION


                   KV PHARMACEUTICAL COMPANY AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
                For the Three Months Ended June 30, 1998 and 1997
                                   (Unaudited)


                                                     1998              1997
                                                     ----              ----
Net Revenues                                     $25,669,670       $18,109,926

Costs and Expenses:
   Manufacturing costs and expenses               15,154,887        10,218,168
   Research and development                        1,643,452         1,507,721
   Selling and administrative                      4,856,509         3,589,518
   Amortization of intangible assets                  42,305            50,014
                                                ------------      ------------
Total costs and expenses                          21,697,153        15,365,421
                                                  ----------        ----------

Operating income                                   3,972,517         2,744,505
                                                 -----------       -----------

Other income (expense):
   Interest expense                                 (113,482)          (74,952)
   Interest and other income                         290,882            91,814
                                                ------------      ------------
Total other income                                   177,400            16,862
                                                ------------      ------------


Income before income taxes                         4,149,917         2,761,367
Provision for income taxes                         1,579,500           920,500
                                                ------------      ------------

Net Income                                       $ 2,570,417       $ 1,840,867
                                                 ===========       ===========

Net Income per Common Share-Basic 
    (after deducting preferred dividends 
    of $105,438 in 1998 and 1997):                     $0.14            $0.10
                                                       =====            =====

Net Income per Common Share-Diluted                    $0.13            $0.09
                                                       =====            =====



See Accompanying Notes to Consolidated Financial Statements
<PAGE>

                   KV PHARMACEUTICAL COMPANY AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                        June 30, 1998 and March 31, 1998

                                   (Unaudited)


                                                    06/30/98         3/31/98
                                                    --------         -------
ASSETS
------
Current Assets:
  Cash and cash equivalents                    $  22,118,049     $ 18,157,595
  Receivables, less allowance for doubtful
     accounts of $333,450 and $332,244            11,985,778       15,304,340
  Inventories                                     15,956,030       15,606,037
  Deferred income taxes                            2,948,907        2,949,434
  Prepaid and other current assets                   474,599          541,989
                                              --------------     ------------
     Total Current Assets                         53,483,363       52,559,395

Net property and equipment                        12,589,287       12,436,533

Goodwill and other assets                          3,385,662        3,364,899
                                               -------------     ------------

TOTAL ASSETS                                     $69,458,312      $68,360,827
                                                 ===========      ===========

LIABILITIES
-----------
Current Liabilities:
  Accounts payable                            $   5,696,925      $  4,280,492
  Accrued liabilities                             9,179,015        12,317,432
  Current maturities of long-term debt              558,333           558,333
                                               ------------      ------------
     Total Current Liabilities                   15,434,273        17,156,257

Long-term debt                                    4,843,889         4,902,222
Deferred income taxes                               535,000           535,000
Other long-term liabilities                       1,732,770         1,603,131
                                                -----------       -----------
  Total Liabilities                              22,545,932        24,196,610
                                                 ----------       -----------

Commitments and Contingencies                            -                 -

SHAREHOLDERS' EQUITY
--------------------
Preferred Stock                                      2,410             2,410
Class A Common Stock                               118,271           117,601
Class B Common Stock                                64,305            64,429
Additional paid-in capital                      34,324,696        34,042,044
Retained earnings                               12,457,651         9,992,686
Less: cost of Class A and Class B 
  Common Stock in treasury                         (54,953)          (54,953)
                                              -------------      ------------

TOTAL SHAREHOLDERS' EQUITY                      46,912,380        44,164,217
                                               ------------      ------------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY    $ 69,458,312      $ 68,360,827
                                              ============      ============



See Accompanying Notes to Consolidated Financial Statements
<PAGE>


                   KV PHARMACEUTICAL COMPANY AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                For the Three Months Ended June 30, 1998 and 1997
                                   (Unaudited)

                                                     1998               1997
                                                    -----               ----
OPERATING ACTIVITIES
Net Income                                     $  2,570,417        $ 1,840,867

Adjustments to reconcile  net  
income to net cash provided by operating
activities:

   Depreciation and amortization                    433,563            427,480

Changes in operating assets and liabilities:
   (Increase) decrease in receivables             3,318,563         (3,604,805)
   Net (increase) in inventories and
      other current assets                         (282,603)          (466,783)

   Increase (decrease) in accounts payable
      and accrued liabilities                    (1,721,457)         2,586,677
   Increase in other                                129,639             36,706
                                                -----------       ------------
  NET CASH PROVIDED BY
     OPERATING ACTIVITIES                         4,448,122            820,142
                                                -----------        -----------
INVESTING ACTIVITIES
   Purchase of property and equipment, net         (544,012)        (1,736,531)
   Other, net                                       (63,068)          (401,183)
                                                ------------       ------------

NET CASH USED IN INVESTING
   ACTIVITIES                                      (607,080)        (2,137,714)
                                                ------------       ------------

FINANCING ACTIVITIES
   Principal payments on long-term debt             (58,333)           (22,244)
   Dividends paid on Preferred Stock               (105,438)          (105,438)
   Exercise of Common Stock options                 283,183             26,508
                                                -----------      -------------
NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES                                119,412           (101,174)
                                                -----------       ------------
INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS                      3,960,454         (1,418,746)

CASH AND CASH EQUIVALENTS AT:
   BEGINNING OF YEAR                             18,157,595          7,627,523
                                                -----------       ------------
   END OF PERIOD                                $22,118,049        $ 6,208,777
                                                ===========        ===========

Non-cash investing and financing activities:
   Portion of building acquired
   through proceeds from a term loan                              $3,500,000
                                                                  ==========



See Accompanying Notes to Consolidated Financial Statements
<PAGE>


              NOTES TO SUMMARIZED CONSOLIDATED FINANCIAL STATEMENTS


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,  1998  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.  Earnings per share
amounts for all periods have been presented and,  where  necessary,  restated to
conform to the requirements of Statement of Financial  Accounting  Standards No.
128.

<PAGE>

NOTE B  -  EARNINGS PER SHARE

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

                                               For the Three Months Ended
Numerator:                                     06/30/98            06/30/97
                                               --------            -------
Net income                                  $  2,570,417        $  1,840,867

Preferred Stock dividends                       (105,438)           (105,438)
                                            -------------      --------------

Numerator for basic earnings per
   share--income available to common
   shareholders                                2,464,979           1,735,429

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

Numerator for diluted earnings per
   share-income available to
   common shareholders after
   assumed conversions                      $  2,570,417        $  1,735,429

Denominator:

Denominator for basic earnings per
   share--weighted-average shares             18,145,108          18,065,376

Effect of dilutive securities:
   Employee stock options                        940,053             529,534
   Convertible Preferred Stock                   903,750                  -
                                            ------------      --------------

Dilutive potential Common Shares               1,843,803             529,534

   Denominator for diluted earnings
      per share--adjusted weighted-average
      shares and assumed conversions          19,988,911          18,594,910
                                              ==========          ==========

Basic Earnings per Share (1):                     $ 0.14              $ 0.10
                                                  ======              ======

Diluted Earnings per Share (1) (2):               $ 0.13              $ 0.09
                                                  ======              ======

(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)  The options to purchase  Class A Common  Stock sold in  connection  with an
     agreement  entered into in January 1996 are not included in the computation
     of diluted EPS because the options' minimum exercise price was greater than
     the average market price of the Class A Common shares.

         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.

<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 first  quarter of fiscal 1999
increased  $7.6 million or 42% to $25.7  million from $18.1 million in the first
quarter of last year.  This sales growth was primarily due to an increase in the
volume of new and existing  products sold. Net revenues from Ethex  increased by
$6.7  million,  or 48%, to $20.7 million from $14.0 million in the first quarter
of last year,  primarily  due to sales of  products  introduced  after the first
quarter of fiscal 1998.  Net revenues from Particle  Dynamics  increased by $1.0
million,  or 40%, to $3.6 million in the first  quarter from $2.6 million in the
first  quarter of fiscal 1998,  due to sales of new products and the addition of
new customers for existing  products,  while contract services revenues declined
slightly.

         Costs and  Expenses.  Manufacturing  costs as a percentage  of revenues
increased  to 59% during the first  quarter of fiscal  1999 from 57% in the same
period last year,  due primarily to a change in the mix of products sold and the
effect of additional competitors in certain generic pricing areas.

         Selling and administrative  expenses increased $1.3 million, or 36%, to
$4.9  million  during the first  quarter of fiscal 1999 from $3.6 million in the
first quarter of fiscal 1998. However,  as a percentage of revenue,  selling and
administrative  expenses  decreased  to 19%  from  20% in the  prior  year.  The
increase in selling and administrative expenses was primarily related to selling
and promotional activities associated with the Company's continued growth.

         Income taxes were  provided at an effective  rate of 38.1% in the first
quarter of fiscal 1999 compared to 33.3% in the first quarter of last year.  The
increase was  attributable  to the  availability  and utilization of certain tax
credits during the first quarter of fiscal 1998 which were not available  during
the first quarter of fiscal 1999.

         Net Income.  As a result of the  factors  described  above,  net income
improved $0.7  million,  or 40%, to $2.6 million for the first quarter of fiscal
1999 compared to the prior year quarter.

         (c) Liquidity and Capital Resources

         The following  table sets forth  selected  balance sheet ratios at June
30, 1998, March 31, 1998 and June 30,

1997.

            ($ in 000's)

                                   6/30/98         3/31/98          6/30/97
                                  --------       -----------      -----------
Working Capital Ratio             3.5 to 1         3.1 to 1         4.1 to 1

Quick Ratio                       2.2 to 1         2.0 to 1         2.3 to 1

Debt to Debt Plus Equity          .10 to 1         .11 to 1         .15 to 1

Total Liabilities to Equity       .48 to 1         .55 to 1         .41 to 1

Cash and Equivalents             $  22,118        $  18,158        $   6,209

Working Capital                  $  38,049        $  35,403        $  24,850

Long Term Liabilities            $   7,112        $   7,040        $   6,352

Stockholders' Equity             $  46,912        $  44,164        $  34,846

         Working  capital for the quarter  ended June 30,  1998  increased  $2.6
million,  or 7.5%, to $38.0  million from $35.4  million at March 31, 1998,  due
primarily to the addition of the  Company's  net income,  and a decrease of $3.3
million in accounts receivable and $3.1 million in accrued  liabilities,  offset
by an increase in accounts  payable of $1.4 million.  Net cash  increased at the
end of the first  quarter of fiscal 1999 for the same  reasons.  The decrease in
receivables reflects lower sales volume and increased collections in the current
quarter relative to the volume and timing of sales in the prior quarter. Accrued
liabilities  decreased due to lower accrued  income taxes and a reduction in the
revenue sharing  liability.  The accounts  payable increase  reflects  increased
purchases  of  raw  material  and  packaging   inventories  to  support  planned
production increases for new and existing products. These changes in receivables
and  current   liabilities   combined  with  net  income  and  non-cash  charges
aggregating $3.0 million,  resulted in cash provided by operating  activities of
$4.4 million in the first quarter of fiscal 1999, an improvement of $3.6 million
over the first quarter of last year.

         At the end of the first quarter of fiscal 1999,  the  Company's  "quick
assets" (cash, cash equivalents and accounts receivable) increased $0.6 million,
or 2%, and current  liabilities  decreased $1.7 million,  or 10%, resulting in a
"quick ratio" of 2.2 to 1 compared to 2 to 1 at March 31, 1998.  The increase in
"quick  assets"  reflected  a $4.0  million  (22%)  increase  in cash  and  cash
equivalents over the balance at March 31, 1998.

         The debt to debt plus equity and total  liabilities to equity ratios at
June 30, 1998 improved as a result of the Company's net income.

         Investing  activities  for the first  quarter of fiscal 1999  reflected
capital  expenditures of $0.5 million and net  expenditures  for other assets of
$0.1 million, which were provided for through operations.

         The  Company  has been able to pass along to its  customers  at least a
portion of cost increases in labor,  manufacturing  and raw materials related to
its operations, except where competitive conditions existing in the market place
have prevented it from passing along such cost increases to its customers. It is
not meaningful to compare  changing prices over the past three years because the
products  produced,  product mix sold and sources of raw  materials  have varied
substantially.

         The Company anticipates increasing expenditures 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  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 short term needs.


<PAGE>


                           PART II. OTHER INFORMATION

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

                  None.


<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:       August  5,  1998                /s/ Marc S. Hermelin
            ----------------                -----------------------------------
                                            Marc S. Hermelin
                                            Vice Chairman of the Board and
                                            Chief Executive Officer



Date:       August  5,  1998                /s/ Gerald R. Mitchell
            ----------------                -----------------------------------
                                            Gerald R. Mitchell
                                            Vice President - Finance
                                            Chief Financial Officer