|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, 2000


OR

(   )   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D)
         OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number    1-9601K-V PHARMACEUTICAL COMPANY(Exact name of registrant as specified in its charter)
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

|2503 SOUTH
HANLEY ROAD, ST. LOUIS, MISSOURI 63144(Address of
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 Common Stock |  | Number of Shares Outstanding as of this Report Date
|------------------------------ |  | ---------------------------------------------------

|Class A Common Stock, par value $.01 per share |  | 18,773,863
|---------------------------------------------- |  | ----------

|Class B Common Stock, par value $.01 per share |  | 10,577,628
|---------------------------------------------- |  | ----------

|PART 1
                                               FINANCIAL INFORMATION
KV PHARMACEUTICAL COMPANY AND SUBSIDIARIES
                                         CONSOLIDATED STATEMENTS OF OPERATIONS
                             For the Three Months and Nine Months Ended December 31, 2000 and 1999
                                                      (Unaudited)
                                    (Dollars in 000's, except per share information)
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

`For the Three           For the Nine
                                       Months Ended            Months Ended
                                    ------------------     ---------------------
                                   12/31/00   12/31/99     12/31/00    12/31/99
                                   --------   --------     --------    --------


Revenues                            $43,777   $ 38,792     $127,887    $107,596

Costs and Expenses:
  Manufacturing costs                17,015     16,234       51,112      48,459
  Research and development            2,328      2,137        6,615       6,040
  Selling and administrative         15,341     10,212       43,826      28,712
  Amortization of intangible
    assets                              597        611        1,779       1,680
                                   --------   --------     --------   ---------
Total Costs and Expenses             35,281     29,194      103,332      84,891
                                     ------     ------      -------    --------

Operating income                      8,496      9,598       24,555      22,705

Other Income (Expense):
  Interest expense                     (189)      (510)        (878)     (1,560)
  Interest and other income              72        124          139         368
                                    -------   --------     --------   ---------
Total Other Income (Expense)           (117)      (386)        (739)     (1,192)
                                     ------   --------     --------   ---------

Income before income taxes            8,379      9,212       23,816      21,513
Provision for income taxes            3,008      3,498        8,670       8,172
                                    -------    -------     --------    --------

Net Income                           $5,371     $5,714      $15,146     $13,341
                                     ======     ======      =======     =======

Net Income per Common Share
   Basic                              $0.18      $0.20        $0.51       $0.47
                                      =====      =====        =====       =====

   Diluted                            $0.17      $0.19        $0.47       $0.44
                                      =====      =====        =====       =====


See accompanying Notes to Financial Statements`

|KV PHARMACEUTICAL COMPANY AND SUBSIDIARIES
                                                  COMPREHENSIVE INCOME
                             For the Three Months and Nine Months Ended December 31, 2000 and 1999
                                                      (Unaudited)
                                                   (Dollars in 000's)
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

`For the Three         For the Nine
                                           Months Ended          Months Ended
                                       -------------------    ------------------
                                       12/31/00   12/31/99    12/31/00  2/31/99
                                       --------   --------    --------  -------

Net income                               $5,371    $5,714     $15,146   $13,341
                                         ------    ------     -------   -------
Other comprehensive income, net
 of tax:
   Unrealized losses on securities:
      Unrealized holding losses
      arising during period                   -        (5)          -       (38)
      Reclassification adjustment
      for losses on the sale of
      securities included in
      net income                              -        22           -        63
                                      ---------   -------    --------   -------

Other comprehensive income                    -        17           -        25
                                      ---------   -------    --------   -------
                                              -
Comprehensive Income                     $5,371    $5,731     $15,146   $13,366
                                         ======    ======     =======   =======`

|KV PHARMACEUTICAL COMPANY AND SUBSIDIARIES
                                            CONSOLIDATED BALANCE SHEETS
                                       December 31, 2000 and March 31, 2000
                                                 (Dollars in 000's)
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

`(Unaudited)
                                                        12/31/00       03/31/00
                                                      ----------      ----------


ASSETS
------
Current Assets:
  Cash and equivalents                                 $ 3,965          $ 3,443
  Receivables, less allowance
    for doubtful accounts of
    $381 and $438 at December 31
    and March 31, respectively                          31,564           23,681
  Inventories                                           31,546           30,114
  Deferred income taxes                                  2,763            3,138
  Prepaid and other current assets                       1,830              637
                                                      --------       ----------
     Total Current Assets                               71,668           61,013

Property and equipment, less
   accumulated depreciation of $21,335
   and $19,422 at December 31 and
   March 31, respectively                               36,242           32,173

Intangibles and other assets, less
   accumulated amortization of
   $5,560 and $4,087 at December 31
   and March 31, respectively                           46,193           47,132
Deferred income taxes                                      138               67
                                                      --------       ----------
TOTAL ASSETS                                          $154,241         $140,385
                                                      ========         ========

LIABILITIES
-----------
Current Liabilities:
  Accounts payable                                     $ 9,137         $ 10,843
  Accrued liabilities                                    8,515           10,945
  Current maturities of long-term debt                     712            1,659
                                                      ----------      ---------
    Total Current Liabilities                           18,364           23,447

Long-term debt including credit facility                15,896           16,779
Other long-term liabilities                              2,552            2,360
                                                      ---------       ---------
TOTAL LIABILITIES                                       36,812           42,586

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

Class A and Class B Common Stock, $.01 par value:
  150,000,000 and 75,000,000 shares authorized,
  respectively; Class A-issued 18,827,291 and
  18,392,999 at December 31 and March 31,
  respectively                                             187              123
  Class B-issued 10,631,056 and 9,910,668 at
  December 31 and March 31, respectively
  (convertible into Class A shares on
  a one-for-one basis)                                     105               66

Additional paid-in capital                              45,656           40,864
Retained earnings                                       71,534           56,799
Less:  Treasury Stock, 53,428 shares each of
  Class A and Class B Common Stock, at cost                (55)             (55)
                                                     ---------        ---------
    TOTAL SHAREHOLDERS' EQUITY                         117,429           97,799
                                                     ---------         --------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY            $154,241         $140,385
                                                      ========         ========


See accompanying Notes to Financial Statements`

|KV PHARMACEUTICAL COMPANY AND SUBSIDIARIES
                                       CONSOLIDATED STATEMENTS OF CASH FLOWS
                               For the Nine Months Ended December 31, 2000 and 1999
                                                    (Unaudited)
                                                (Dollars in 000's)
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

`2000              1999
                                                     -------           -------


OPERATING ACTIVITIES
Net Income                                             $15,146          $13,341
Adjustments to reconcile net income to net
  cash provided by operating activities:
  Depreciation and amortization                          4,266            3,223
  Changes in deferred taxes                                304                0
  Changes in deferred compensation                         192              192
  Changes in operating assets and liabilities:
   (Increase) in receivables                            (7,883)          (7,123)
   Decrease in arbitration award receivable                  -           13,253
   (Increase) in inventories                            (1,432)          (3,998)
   (Increase) decrease in prepaids
     and other assets                                   (2,033)          (1,038)
   (Decrease) in accounts payable and
      accrued liabilities                               (4,136)          (4,285)
                                                     ---------        ---------

NET CASH PROVIDED BY OPERATING ACTIVITIES                4,424           13,565
                                                     ---------         --------

INVESTING ACTIVITIES
  Purchase of property and equipment, net               (6,556)         (11,104)
  Sale of marketable securities                              -            7,548
  Product acquisition                                        -           (3,033)
                                                     ---------         --------

NET CASH (USED IN) INVESTING ACTIVITIES                 (6,556)          (6,589)
                                                      --------         --------

FINANCING ACTIVITIES
  Principal payments on long-term debt                  (6,830)          (9,607)
  Proceeds from credit facility                          5,000            2,000
  Dividends paid on Preferred Stock                       (315)            (315)
  Exercise of Common Stock options                       4,799            1,666
                                                     ---------        ---------

NET CASH PROVIDED BY (USED IN)
  FINANCING ACTIVITIES                                   2,654           (6,256)
                                                     ---------         --------

INCREASE IN CASH AND CASH EQUIVALENTS                      522              720
CASH AND CASH EQUIVALENTS AT:
  BEGINNING OF YEAR                                      3,443            2,617
                                                      --------        ---------
  END OF PERIOD                                         $3,965           $3,337
                                                        ======           ======

NON-CASH INVESTING AND FINANCING ACTIVITIES:
  Portion of product acquisition acquired
    through issuance of:
    Short-term debt                                          -              933
    Common stock                                             -            4,500



See accompanying Notes to Financial Statements`

|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, practices and methods of applying the
same (including consolidating practices) as reflected in the Annual Report of KV
Pharmaceutical  Company and Subsidiaries  (the "Company"),  on Form 10-K for the
year ended  March 31,  2000  filed with the  Commission,  except  that  detailed
footnotes  and  schedules  are not  included.  Reference  is hereby  made to the
footnotes  and  schedules  contained  in  the  Annual  Report.  All  significant
intercompany  balances and transactions have been eliminated and, in the opinion
of management,  all adjustments,  which are of a normal,  recurring nature only,
necessary  to present a fair  statement  of the  results of the  Company and its
subsidiaries, have been made.


NOTE B 
INVENTORIES
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

`Inventories consist of ($ in 000's):

                                        December 31, 2000    March 31, 2000
                                        -----------------    --------------

         Finished products                    $15,358           $15,990
         Work-in-process                        3,820             2,544
         Raw materials and supplies            13,200            12,642
         Reserves for obsolescence               (832)           (1,062)
                                            ---------          --------
                                              $31,546           $30,114
                                              =======           =======`

|NOTE C  EARNINGS
PER SHARE

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

`For the               For the
                                       Three Months Ended     Nine Months Ended

NUMERATOR ($ IN 000'S):               12/31/00  12/31/99    12/31/00   12/31/99
                                      --------  --------    --------   --------

Net income                              $5,371    $ 5,714    $15,146    $13,341

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

Numerator for basic earnings
   per share--income available
   to Common Shareholders                5,266      5,609     14,831     13,026

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

Numerator for diluted earnings per
   share-income available to
   Common Shareholders after
   assumed conversions                  $5,371     $5,714    $15,146    $13,341
                                        ======     ======    =======    =======

DENOMINATOR:

Denominator for basic earnings per
   Share--weighted-average shares       29,200     28,143     28,852     27,914
                                       -------     ------     ------     ------

Effect of dilutive securities:
   Stock options                         1,683      1,105      1,794        955
   Convertible Preferred Stock           1,350      1,350      1,350      1,350
                                      --------    -------      -----  ---------

Dilutive potential Common Shares         3,033      2,455      3,144      2,305
                                      --------    -------    -------   --------

   Denominator for diluted earnings
      per share--adjusted weighted-
      average shares and assumed
      conversions                       32,233     30,598     31,996     30,219
                                        ======     ======     ======     ======

BASIC EARNINGS PER SHARE (1):            $0.18      $0.20      $0.51      $0.47
                                         =====      =====      =====      =====

DILUTED EARNINGS PER SHARE(1)(2):        $0.17      $0.19      $0.47      $0.44
                                         =====      =====      =====      =====`

| | (1) | The two-class method
 for Class A and Class B Common Stock is not presented
because the earnings per share are equivalent to the if converted method since
dividends were not declared or paid and each class of Common Stock has equal
ownership of the Company.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | Employee stock options to purchase
 185,250 shares at December 31, 1999 of Class A and Class B Common Stock are not
included in the computation of diluted earnings per share because their exercise
price was greater than the average market price during the quarter and as such
are considered anti-dilutive.  There were no anti-dilutive shares at December 31, 2000.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|NOTE D 
SEGMENT FINANCIAL INFORMATION

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

`Mfg. &
                                    Branded   Specialty   Specialty    Contract
                                   Products   Generics    Materials    Services
                                   --------   --------    ---------    --------
Three Months Ended December 31
------------------------------

Total revenue               2000     $6,618     $32,193      $4,083      $  687
                            1999      7,601      25,461       4,478       1,193

Segment Profits             2000     (1,439)     17,082       1,038        (175)
                            1999      1,884      12,518       1,055         580

Identifiable Assets         2000      7,351      37,066       9,164      36,075
                            1999      8,899      27,100       6,662      23,809

Property and                2000          -           -           -       1,398
Equipment Additions         1999        108         133          90       2,985

Depreciation and            2000          8          56          39         641
Amortization                1999         17          37          35         572


Nine Months Ended December 31
-----------------------------

Total Revenues              2000    $15,145     $97,569     $12,627      $2,329
                            1999     14,812      77,133      12,726       2,686

Segment Profits             2000     (6,766)     51,226       3,216        (175)
                            1999      2,310      35,300       2,819         925

Property and                2000        162         197          56       4,197
Equipment Additions         1999        108         335         129       6,954

Depreciation and            2000         69         109         115       2,195
Amortization                1999         43         100         103       1,295


                                         All
Three Months Ended December 31          Other    Eliminations     Consolidated
------------------------------          -----    ------------     ------------

Total revenue               2000      $   196            -          $43,777
                            1999           59            -           38,792

Segment Profits             2000       (8,127)           -            8,379
                            1999       (6,825)           -            9,212

Identifiable Assets         2000       65,743       (1,158)         154,241
                            1999       71,127       (1,158)         136,439

Property and                2000          555            -            1,953
Equipment Additions         1999        1,815            -            5,131

Depreciation and            2000          507            -            1,251
Amortization                1999          543            -            1,204


Nine Months Ended December 31
-----------------------------

Total Revenues              2000    $     217            -         $127,887
                            1999          239            -          107,596

Segment Profits             2000      (23,685)           -           23,816
                            1999      (19,841)           -           21,513

Property and                2000        1,944            -            6,556
Equipment Additions         1999        3,578            -           11,104

Depreciation and            2000        1,778            -            4,266
Amortization                1999        1,682            -            3,223`

|NOTE E 
STOCK SPLIT

On August  18,  2000,  the  Company's  Board of  Directors  approved  a
three-for-two  stock split to be effected in the form of a stock dividend of its
Common Stock.  The stock dividend was paid on September 7, 2000 to  shareholders
of record as of the close of  business  on August  28,  2000.  All share and per
share   amounts   have  been   retroactively   restated  to  reflect  the  stock
split.

"Safe Harbor" statement under the Private Securities  Litigation Reform
Act of 1995 (the "1995 Act"):  This report may contain  various  forward-looking
statements,  which may be based  on,  or  include  assumptions,  concerning  the
Company's  operations,  future  results  and  prospects.  These  forward-looking
statements  are  based on  current  expectations  and are  subject  to risks and
uncertainties.  In connection with the "SAFE HARBOR" provisions of the 1995 Act,
the Company provides the following  cautionary statement  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 related assumptions.

Such factors include (but are not limited to) the following: Changes in
current and future business  environment,  including  interest rates and capital
and consumer  spending;  the difficulty of predicting FDA approvals;  acceptance
and demand for new pharmaceutical  products;  the impact of competitive products
and  pricing;  new product  development  and launch;  reliance on key  strategic
alliances;  the  availability  of raw  materials;  the  regulatory  environment;
fluctuations  in operating  results and; the risks detailed from time to time in
the Company's filings with the Securities and Exchange Commission.


Item 2.     
Management's Discussion and Analysis of Results
                of Operations, and Liquidity and Capital Resources

(a)   Results of
Operations ($ in 000's)

Revenues.
         Net  revenues for the third  quarter of fiscal 2001 ended  December 31,
2000  increased  $5.0 million,  or 12.9% to $43.8 million from $38.8 million for
the same  period  last  year.  For the first  nine  months of fiscal  2001,  net
revenues were $127.9 million,  an increase of $20.3 million,  or 18.9%, over the
same period  last year.  The  increase  in  revenues  for the quarter was due to
higher sales of specialty generic products, which were up $6.7 million, or 26.4%
over last year,  partially offset by reductions of $1 million in  cardiovascular
branded product sales and $.4 million in specialty materials. For the nine-month
period,  the increase was due to higher  sales of specialty  generics,  up $20.4
million, or 26.5%, while the other divisions remained relatively the same.

The increase in specialty  generic sales for the quarter was due to new
products ($7.4 million)  primarily in the  cardiovascular and women's healthcare
line,  as  volume  decreases  in  the  existing  products  ($2.8  million)  were
substantially  offset by increased  prices ($2.1  million).  These  factors also
contributed  to the increase in sales for the  nine-month  period.  For the nine
months,  new products  contributed  $14.6 million of incremental  sales.  Volume
increases  across the existing  product line  accounted  for $3.3 million of the
increase  and higher  prices  added $2.5  million to sales  compared to the same
period last year. The Company  introduced nine new generic products in the first
nine months of this fiscal year. The increase in volume of the existing products
during the nine months were attributable to higher generic  substitution  rates,
increased sales  associated with trade shows and price increase  buy-ins.  These
increases  were  slightly  offset by price  erosion and lower  volume on certain
distributed  products  in the pain  management  category  which  were  down $1.7
million for the nine months.

Overall,  specialty generic revenues were less than expected due to the
uncertainties regarding market exclusivity and the announcement by Bristol-Myers
Squibb of a new patent that was issued on its drug, Buspar. The Company will not
market  its  generic  equivalent  to  Buspar  until  such  time  as  the  market
exclusivity and patent rights have been clarified.  Despite this delay, revenues
of specialty generic products were up 26.5% over last year.

Branded product sales were down $1.0 million for the quarter, as higher
sales of women's healthcare products were more than offset by lower sales of the
Micro-K®  cardiovascular potassium supplement.  Women's healthcare sales for
the quarter were up $1.2  million,  or 55.1%,  on increased  market  share.  The
decrease  in  Micro-K®   sales  of  $2.2  million  reflects  the  timing  of
speculative  purchases in  anticipation  of a price increase by major  wholesale
customers  during the latter half of the last fiscal year. The increase in sales
for the nine-month  period was due to the  introduction of  Gynazole-1,  a
vaginal antifungal product, which was introduced at the end of the first quarter
of  this  fiscal  year.   Gynazole-1   has  contributed  $2.8  million  of
incremental sales to the period already capturing 6.4% of new prescriptions.  In
addition,  other women's healthcare  products including PreCare and Premesis Rx,
increased over 63%, or $2.7 million over last year's  nine-month  period.  Total
women's  healthcare  product sales  increased $5.5 million,  or 128%,  over last
year's period.  These  increases  more than offset the $5.4 million  decrease in
Micro-K, that resulted from speculative customer purchases, in anticipation of a
year-end price increase, during the latter half of the prior year.

Net revenues of Particle  Dynamics,  Incorporated  (PDI) for the fiscal
2001 third  quarter  and nine months  totaled  $4.1  million and $12.6  million,
respectively, compared to $4.5 million and $12.7 million in fiscal 2000. Results
for both fiscal 2001  periods  reflect a  customer's  decision  during the third
quarter to reformulate a product  previously  served by PDI. Despite this impact
and a soft market in the  general  industry,  it is  anticipated  that  Particle
Dynamics will replace this with expected growth in other product areas.

Costs and Expenses.

Manufacturing  costs decreased as a percent of revenues for the quarter
and  the  nine  months  due to  higher  margin  new  specialty  generic  product
introductions  and the effects of favorable  pricing and product mix in both the
generic and branded product lines. In addition the quarter benefited from a $1.2
million  reimbursement  of  overcharges  on certain  raw  materials  used in the
production  of the  Company's  products.  For the quarter,  manufacturing  costs
declined  to 38.9%  from  41.8% and for the nine  months to 40.0%  from 45.0% of
revenues last year.

Research and development  expenses increased $.2 million,  or 9.0%, for
the quarter and $.6  million,  or 9.5% for the nine months  compared to the same
periods of the prior year.  The  increase  in expenses  for the quarter and nine
months  is  due  primarily  to  payments   made  in   connection   with  product
co-development  arrangements.  The  Company  plans to  continue  its new product
development  efforts  and to rely on new  products as an  important  part of its
overall growth strategy.


Selling and administrative  expenses  increased $5.1 million,  or 50.2%
for the quarter and $15.1 million,  or 52.6% for the nine months.  The increases
in both periods are due to higher corporate administrative expenses, incremental
marketing  expenses  in  support  of the  specialty  generics  product  line and
marketing expenses and continued investment in expanding the sales force for the
branded products  marketing  division.  Corporate  administrative  expenses were
higher due to increases in payroll  related  expenses  associated with expanding
the Company's management and administrative infrastructure to keep pace with its
continued  growth and the acquisition of a leased facility for future  expansion
and consolidation of the Company's  distribution  operations and  administrative
offices.  These  expenses  were up $1.2 million for the quarter and $3.3 million
for the nine months.  Marketing expenses  associated with the specialty generics
product  line were up $.8 million for the quarter and $1.3  million for the nine
months due to  introducing  nine new  products in fiscal 2001.  The  incremental
marketing  and selling  expenses  associated  with  branded  products  were $3.1
million for the quarter and $10.4 million for the nine months,  due primarily to
the rapidly  growing  branded  sales force which has almost  tripled  from 56 at
December 31, 1999, up to approximately 150 professionals at December 31, 2000.


Interest expense decreased $.3 million, or 62.9% for the quarter and is
down $.7 million, or 43.7%, for the nine months on lower long-term debt.


Net Income.
         As a result of the factors  described  above,  net income decreased $.3
million,  or 6.0%, for the quarter and increased $1.8 million, or 13.5%, for the
nine months ended  December  31, 2000  compared to the same periods of the prior
year.

(b)
     Liquidity and Capital Resources


Cashflow.
         Cash provided by operations  was $4.4 million for the first nine months
of fiscal  2001,  a decrease of $9.1  million from the first nine months of last
year  primarily due to the  collection of an  arbitration  award of $8.2 million
(net of taxes) during the first quarter of the prior fiscal year.  Excluding the
effect of the non-recurring  award,  cash from operations  decreased $.9 million
for the first nine months compared to last year. This decrease was due primarily
to a $3.8 million increase in cash used for working capital over the same period
last year partially  offset by a $1.8 million  increase in net income and a $1.0
million increase in depreciation and amortization.

The increase in cash used for working capital  resulted  primarily from
an increase in accounts  receivable,  due entirely to higher accounts receivable
in the specialty  generics division ($10.5 million),  and a decrease in accounts
payable and accrued  liabilities.  The increase in  receivables in the specialty
generics  division is due to higher sales volume and granting  extended  payment
terms in  connection  with the  launch  of  Doxazosin  (generic  alternative  to
Cardura® by Pfizer) during the third quarter of fiscal 2001. Collections are
expected  to return to normal  levels in the fourth  quarter.  The  decrease  in
accounts  payable and accrued  liabilities  is due to the timing of payments for
marketing  related expenses in the branded  business,  lower accruals related to
the timing of vacations  and a lower income tax liability due to lower income in
this year's third quarter compared to last year's fourth quarter.

Investing  activities  for the nine  months  were  confined  to capital
expenditures of $6.6 million.  The expenditures were primarily for machinery and
equipment  for  the  upgrade  and  expansion  of  the  Company's  pharmaceutical
manufacturing and distribution facilities.

Financing  activities  during  the  nine-month  period  included a $1.8
million  reduction  in long-term  debt  including  the credit  facility and $4.7
million received from the exercise of Common Stock options. The Company plans to
continue to use available cash to reduce its long-term debt.

The Company  continues to examine  opportunities to expand its business
through  product and company  acquisitions.  The  Company's  capital  resources,
financial  condition and results of operations  could be materially  impacted if
the Company were to complete one or more of such acquisitions.

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

Inflation.
         Although at reduced  levels in recent  years,  inflation  continues  to
apply  upward  pressure on the cost of goods and  services  used by the Company.
However, the Company believes that the net effect of inflation on its operations
was  minimal  during the first nine months of fiscal  2001 and fiscal  2000.  In
addition, changes in the mix of products sold and the effect of competition have
made a  comparison  of changes in selling  prices  less  meaningful  relative to
changes in the overall rate of inflation  during the first nine months of fiscal
2001 and fiscal 2000.

Item 3:     
Variable Rate Risk.

Advances  to the  Company  under the  Company's  credit  facility  bear
interest  at  a  rate  which   varies  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 expense.

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


a)
     Exhibits - None.

b)
    The  Company did not file any reports on Form 8-K during
the quarter ended          
   December 31, 2000.
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|SIGNATURES

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

| |  | KV PHARMACEUTICAL COMPANY
| |  | -------------------------

|Date:   February 13, 2001 |  | By:   /s/ Marc S. Hermelin
                       Marc S. Hermelin
                       Vice Chairman of the Board and
                       Chief Executive Officer
|------------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                         
|                         
|Date:   February 13, 2001 |  | By:   /s/ Gerald R. Mitchell
                       Gerald R. Mitchell
                       Vice President & Treasurer
                       Chief Financial Officer