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, 2001

                                       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 Outstanding
      Common Stock                                 as of this Report Date
    -----------------                           ----------------------------

Class A Common Stock, par value $.01 per share          20,070,557
Class B Common Stock, par value $.01 per share          10,637,572


<PAGE>

                                     PART I

                              FINANCIAL INFORMATION


                   KV PHARMACEUTICAL COMPANY AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)
                      (In thousands, except per share data)

<TABLE>
<CAPTION>
                                          Three Months Ended            Six Months Ended
                                             September 30,                September 30,
                                          --------------------         ------------------
                                          2001           2000            2001         2000
                                          ----           ----            ----         ----
<S>                                  <C>           <C>           <C>           <C>

Net Revenues                            $52,793        $45,300        $100,421      $84,109
                                        -------        -------        --------      -------
Costs and Expenses:
   Manufacturing costs                   21,250         17,902          38,825       34,098
   Research and development               2,419          1,738           4,953        4,287
   Selling and administrative            17,459         16,322          35,455       28,484
   Amortization of intangible assets        669            583           1,312        1,181
                                         ------         ------          ------       ------
Total costs and expenses                 41,797         36,545          80,545       68,050
                                         ------         ------          ------       ------

Operating income                         10,996          8,755          19,876       16,059
                                         ------         ------          ------       ------
Other income (expense):
   Interest expense                        (107)          (325)           (210)        (689)
   Interest and other income                138             43             243           67
                                         ------         ------          ------       ------
Total other income (expense), net            31           (282)             33         (622)
                                         ------         ------          ------       ------

Income before income taxes               11,027          8,473          19,909       15,437
Provision for income taxes                3,997          3,050           7,217        5,662
                                         ------         ------         -------       ------
Net Income                              $ 7,030        $ 5,423        $ 12,692      $ 9,775
                                        =======        =======        ========      =======

Net Income per Common Share-Basic         $0.23          $0.18           $0.42        $0.33
                                        =======        =======        ========      =======

Net Income per Common Share-Diluted       $0.22          $0.17           $0.40        $0.31
                                        =======        =======        ========      =======


See Accompanying Notes to Consolidated Financial Statements.


</TABLE>

<PAGE>
<TABLE>
<CAPTION>

                   KV PHARMACEUTICAL COMPANY AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                        (In thousands, except share data)

                                                                        September 30, 2001         March 31,2001
                                                                        ------------------         -------------
                                                                            (unaudited)
<S>                                                                        <C>                     <C>
ASSETS
------
Current Assets:
   Cash and equivalents                                                         $17,473                 $ 4,128
   Receivables, less allowance for doubtful accounts of
     $450 and $448 at September 30, 2001 and March 31, 2001, respectively        36,982                  26,259
   Inventories                                                                   30,435                  32,211
   Prepaid and other assets                                                       1,735                   3,804
   Deferred income taxes                                                          1,789                   1,644
                                                                                 ------                  ------
      Total Current Assets                                                       88,414                  68,046

Property and equipment, less accumulated depreciation and amortization           38,377                  36,847
Intangibles and other assets, net of amortization                                46,506                  46,524
                                                                               --------                 -------
TOTAL  ASSETS                                                                  $173,297                $151,417
                                                                               ========                ========
LIABILITIES
-----------
Current Liabilities:
   Accounts payable                                                            $  8,205                 $ 6,349
   Accrued liabilities                                                           16,950                  10,067
   Current maturities of long-term debt                                           2,987                     712
                                                                               --------                 -------
     Total Current Liabilities                                                   28,142                  17,128

Long-term debt                                                                    2,631                   5,080
Other long-term liabilities                                                       2,684                   2,534
Deferred income taxes                                                               952                     733
                                                                               --------                 -------
TOTAL  LIABILITIES                                                               34,409                  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
  shares at September 30, 2001 and 240,000 shares at 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 20,123,875 and 18,896,945 as of September 30, 2001 and
  March 31, 2001, respectively                                                      201                     189
  Class B-issued 10,691,000 and 10,663,574 as of September 30, 2001 and
  March 31, 2001, respectively (convertible into Class A shares on a
  one-for-one basis)                                                                107                     107

Additional paid-in capital                                                       46,071                  45,792
Retained earnings                                                                92,564                  79,907
Less:  Treasury Stock, 53,318 shares of  Class A and 53,428 shares
 of Class B Common Stock at September 30, 2001 and March 31, 2001,
 respectively                                                                       (55)                    (55)
                                                                               --------                 -------
TOTAL  SHAREHOLDERS'  EQUITY                                                    138,888                 125,942
                                                                               --------                 -------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                     $173,297                $151,417
                                                                               ========                ========

See Accompanying Notes to Consolidated Financial Statements.

</TABLE>
<PAGE>

<TABLE>
<CAPTION>

                   KV PHARMACEUTICAL COMPANY AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                 (In thousands)
                                                                           Six Months Ended
                                                                             September 30,
                                                                     ------------------------
                                                                         2001            2000
                                                                     ---------       --------
<S>                                                                <C>            <C>
Operating Activities
Net income                                                           $  12,692       $  9,775
Adjustments to reconcile net income to net
   cash provided by operating activities:
   Depreciation, amortization and other non-cash charges                 3,171          2,831
   Change in deferred taxes                                                 74            221
   Change in deferred compensation                                         150            128
Changes in operating assets and liabilities:
   Increase in receivables, net                                        (10,723)        (8,321)
   Decrease (increase) in inventories                                    1,776         (1,791)
   Decrease (increase) in prepaids and other assets                        775           (998)
   Increase (decrease) in accounts payable and accrued liabilities       8,739           (231)
                                                                      --------         -------
  Net Cash Provided By Operating Activities                             16,654          1,614
                                                                      --------         -------
Investing Activities
   Purchase of property and equipment, net                              (3,389)        (4,603)
                                                                      --------         -------
Net Cash Used In Investing Activities                                   (3,389)        (4,603)
                                                                      --------         -------
Financing Activities
   Principal payments on long-term debt                                   (174)        (5,108)
   Proceeds from credit facility                                             -          4,000
   Dividends paid on Preferred Stock                                       (35)          (210)
   Exercise of Common Stock options                                        289          4,668
                                                                      --------         -------

Net Cash Provided By Financing Activities                                   80          3,350
                                                                      --------         -------
Increase In Cash and Cash Equivalents                                   13,345            361
Cash and Cash Equivalents at:
   Beginning of Year                                                     4,128          3,443
                                                                      --------         -------
   End of Period                                                       $17,473         $3,804
                                                                      ========         ======

See Accompanying Notes to Consolidated Financial Statements.

</TABLE>
<PAGE>

             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 six-month periods
ended September 30, 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):

                                    September 30, 2001         March 31, 2001
                                    ------------------         --------------
                                        (unaudited)
  Finished goods                           $12,212                 $15,119
  Work-in-process                            3,699                   3,604
  Raw materials and supplies                15,324                  14,076
                                           -------                 -------
                                            31,235                  32,799
  Reserve for obsolescence                    (800)                   (588)
                                           -------                 -------
                                          $ 30,435                $ 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 1,  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.

<PAGE>

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):

<TABLE>
<CAPTION>

                                          Three Months Ended                Six Months Ended
                                          September 30,                     September 30,
                                          ------------------                -----------------
                                            2001           2000           2001          2000
                                            ----           ----           ----          ----
<S>                                    <C>            <C>             <C>           <C>

Numerator:
Net income                               $  7,030        $ 5,423        $12,692       $ 9,775

Preferred Stock dividends                     (17)          (105)           (35)         (210)
                                          -------         ------         ------        ------
Numerator for basic earnings per
   share-income available to common
   shareholders                             7,013          5,318         12,657         9,565

Effect of dilutive securities:
   Preferred Stock dividends                   17            105             35           210
                                          -------         ------         ------        ------
Numerator for diluted earnings per
   share-income available to
   common shareholders after
   assumed conversions                     $7,030         $5,423        $12,692        $9,775
                                           ======         ======        =======        ======
Denominator:
Denominator for basic earnings per
   share-weighted-average shares           30,674         28,821         30,083        28,678
                                          -------         ------         ------        ------
Effect of dilutive securities:
   Stock options                            1,345          1,859          1,276         1,776
   Convertible Preferred Stock                225          1,350            772         1,350
                                          -------         ------         ------        ------
Dilutive potential Common Shares            1,570          3,209          2,048         3,126
                                          -------         ------         ------        ------
Denominator for diluted earnings
   per share-adjusted weighted-average
   shares and assumed conversions          32,244         32,030         32,131        31,804
                                           ======         ======        =======        ======
Basic Earnings Per Share (1):               $0.23          $0.18          $0.42         $0.33
                                           ======         ======        =======        ======
Diluted Earnings Per Share (1)(2):          $0.22          $0.17          $0.40         $0.31
                                           ======         ======        =======        ======

<FN>

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

(2)      Employee  stock  options to  purchase  250  shares and 6,250  shares at
         September  30,  2001 and  2000,  respectively,  of Class A and  Class B
         Common Stock are not included in the  computation  of diluted  earnings
         per share  because  their  exercise  price was greater than the average
         market   price   during  the  quarter   and  as  such  are   considered
         anti-dilutive.


</FN>
</TABLE>
<PAGE>

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.  The  majority  of  research  and  development,
corporate  general  and  administrative  expenses,   amortization  and  interest
expense, as well as interest and other income, are not allocated to segments and
are included in the "All Other"  category in the following  segment  information
(in thousands).

<TABLE>
<CAPTION>
                                                                          Mfg. &
                                 Branded      Specialty     Specialty    Contract       All
                                 Products      Generics     Materials    Services      Other    Eliminations    Consolidated
                                 --------     ---------     ---------    --------      -----    ------------    ------------
<S>                    <C>       <C>          <C>            <C>          <C>          <C>       <C>             <C>
3 Months Ended September 30,
----------------------------
Total revenue           2001       $ 8,312      $38,205        $5,635         $564  $      77            -      $   52,793
                        2000         4,635       35,176         4,721          760          8            -          45,300

Segment Profits         2001           418       18,364         1,176         (161)    (8,770)           -          11,027
                        2000        (2,955)      18,416         1,277         (191)    (8,074)           -           8,473

Identifiable Assets     2001         5,459       40,890         7,695       41,895     78,516       (1,158)        173,297
                        2000         7,030       37,888         9,103       35,190     65,354       (1,158)        153,407

Property and            2001           263           57            29        1,134        382            -           1,865
Equipment Additions     2000            58          197            29        1,829        883            -           2,996


Depreciation and        2001            17           21            37          808        714            -           1,597
Amortization            2000            35           23            38          778        627            -           1,501



6 Months Ended September 30,
----------------------------
Total Revenues          2001      $  17,023      $72,176        $9,854       $1,213  $     155            -        $100,421
                        2000          8,527       65,375         8,544        1,642         21            -          84,109

Segment Profits         2001            930       35,067         1,985         (115)   (17,958)           -          19,909
                        2000         (5,327)      34,145         2,178            -    (15,559)           -          15,437

Property and            2001            265           78           106        2,155        785            -           3,389
Equipment Additions     2000            162          197            56        2,799      1,389            -           4,603


Depreciation and        2001             33           42            74        1,569      1,453            -           3,171
Amortization            2000             61           53            76        1,370      1,271            -           2,831

</TABLE>
<PAGE>

NOTE F - RECENTLY ISSUED ACCOUNTING STANDARDS

         In June 2001, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 141, Business Combinations (SFAS 141), and
No. 142,  Goodwill and Other Intangible Assets (SFAS 142). 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  requires,  among  other  things,  that  companies  no  longer
amortize  goodwill,  but instead test goodwill for impairment at least annually.
In addition, SFAS 142 requires that the Company identify reporting units for the
purposes of assessing potential future impairments of goodwill,  reassessing the
useful  lives  of other  existing  recognized  intangible  assets,  and  ceasing
amortization of intangible  assets with an indefinite useful life. An intangible
asset  with an  indefinite  useful  life  should be  tested  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 recognized 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  September  30,  2001,  the net carrying  amount of
goodwill is $584,000 and other intangible assets is $41.3 million.  Amortization
expense during the  three-month  and six-month  periods ended September 30, 2001
was  $587,000  and  $1.2  million,  respectively.   Currently,  the  Company  is
assessing, but has not yet determined, how the adoption of SFAS 141 and SFAS 142
will impact its financial position and results of operations.

NOTE G - CONTINGENCIES

         ETHEX  Corporation,  a  wholly-owned  subsidiary  of the Company and KV
Pharmaceutical  are defendants in a lawsuit styled,  Healthpoint,  Ltd. v. ETHEX
Corporation  pending in federal  court in San Antonio,  Texas.  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 may or may not accept the jury's  verdicts.  The court's judgment may then
be appealed.  The Company and its counsel  believe  that the jury's  recommended
award is excessive  and is not  sufficiently  supported by the facts or the law.
The Company intends to pursue vigorously 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.

                             "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,   KV  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  September  30,  2001
increased  $7.5  million,  or 17%, to $52.8  million from $45.3  million for the
corresponding  quarter in the prior year. For the six months ended September 30,
2001, net revenues increased $16.3 million, or 19%, to $100.4 million from $84.1
million  for the  corresponding  period in the prior year.  The  increase in net
revenues for both the quarter and six-month  periods was due primarily to higher
sales of branded products, specialty generics, and specialty material products.

         Branded product sales  increased $3.7 million,  or 79%, to $8.3 million
for the quarter and $8.5  million,  or 100%,  to $17.0 million for the six-month
period  due  to  increased  sales  volume  along  all  product  categories.  The
PreCare(R)  prenatal family of products had sales  increases of $.9 million,  or
34%,  and  $2.8  million,  or  64%,  for  the  quarter  and  six-month  periods,
respectively, due to continued volume-driven increases in market share. Sales in
the  cardiovascular  line increased $1.1 million,  or 83%, and $3.5 million,  or
159%,  for  the  quarter  and  six-month  periods,   respectively,  as  customer
inventories  returned to more normal levels compared to the corresponding  prior
periods.  Gynazole-1(R),  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(R)  increased $1.7 million,  or
324%,  and for the  six-month  period,  sales  of this  product  increased  $2.3
million, or 148%.

         Specialty generic product sales increased $3.0 million, or 9%, to $38.2
million  for the  quarter and $6.8  million,  or 10%,  to $72.2  million for the
six-month  period.  The increase in specialty  generic sales for the quarter was
attributable to a $5.0 million increase in the sales volume of existing products
and $1.2 million of sales of new products. These increases were partially offset
by $3.2 million of product  price  erosion.  For the  six-month  period,  volume
increases  in sales of existing  products  accounted  for $10.1  million and new
products  contributed  incremental  sales of $2.0 million.  The increased  sales
volume was partially offset by $5.3 million of product price erosion.  The price
erosion  experienced during both the quarter and six-month periods resulted from
normal and expected competitive price erosion.

         Net revenues of specialty material products  increased $.9 million,  or
19%, to $5.6 million for the quarter and increased $1.3 million, or 15%, to $9.9
million for the  six-month  period due  primarily  to sales of new  products and
increased sales of existing products.

         Costs and Expenses. Manufacturing costs increased $3.3 million, or 19%,
to $21.3 million for the quarter and $4.7 million,  or 14%, to $38.8 million for
the six-month period.  For the quarter,  manufacturing  costs as a percentage of
net revenues  increased to 40.3% from 39.5%,  while,  for the six-month  period,
manufacturing  costs as a percentage of net revenues  decreased to 39% from 41%.
The  increase  in the  manufacturing  cost  percentage  for the  quarter was due
primarily  to the impact of some normal  price  erosion  experienced  by certain
products in the generic and raw materials product lines. The unfavorable  impact
of pricing was  partially  offset by a 79% increase in sales of higher  margined
branded  products.  For the  six-month  period,  the  lower  manufacturing  cost
percentage was driven by volume efficiencies, lower revenue-sharing costs, and a
100%  increase  in sales of branded  products.  For the  quarter  and  six-month
periods,  branded  product  sales  comprised 16% and 17%,  respectively,  of net
revenues as  compared  to 10% of net  revenues  for both the  comparative  prior
quarter and six-month periods.

         Research and  development  expenses  increased $.7 million for both the
quarter and six-month periods. The increase in research and development expenses
was due to  higher  costs  associated  with  clinical  testing  relative  to the
Company's  internal product  development  efforts and higher  personnel  related
expenses due to the expansion of the Company's  research and development  staff.
The  increase in the  six-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.

         Selling and administrative  expenses increased $1.1 million,  or 7%, to
$17.5 million for the quarter and $7.0 million, or 24%, to $35.5 million for the
six-month period.  The increase in selling and  administrative  expenses for the
quarter  was due  primarily  to volume  driven  allowances  on sales of  certain
Company  products  and  personnel  costs  associated  with  an  increase  in the
Company's  administrative  personnel.  For the  six-month  period,  selling  and
administrative  expenses  increased  primarily  due  to  selling  and  marketing
expenses  associated  with the expansion of the branded  product sales force and
volume  driven  allowances  on  sales of  certain  Company  products.  Corporate
administrative  expenses  were higher due to  personnel  costs  associated  with
an increase in the Company's administrative and management personnel.

         Interest expense  decreased $.2 million and $.5 million for the quarter
and  six-month  periods,  respectively,  due  to a  corresponding  reduction  in
long-term debt.

         Net Income.  As a result of the  factors  described  above,  net income
improved  for the quarter by $1.6  million,  or 30%, to $7.0 million and for the
six-month period by $2.9 million, or 30%, to $12.7 million.

         (b)   Liquidity and Capital Resources

         Net cash  provided by operating  activities  was $16.7  million for the
six-month period ended September 30, 2001 compared to $1.6 million for the prior
year's comparative  six-month period.  Operating cash flow increased as a result
of higher net income, lower inventories and other assets, and increased accounts
payable/accrued liabilities.  These factors were partially offset by an increase
in  accounts  receivable  from  shipments  on orders  placed near the end of the
quarter.  The decrease in  inventories  was  reflective of lower  finished goods
inventories  attributable  primarily  to higher  sales of branded and  specialty
generic  products.  The increase in accounts  payable was  reflective  of higher
trade payables,  which resulted from the timing of various  material  purchases.
The  increase in accrued  liabilities  reflected  an increase of $6.2 million in
accrued income taxes due to the timing of the quarterly tax payment.

         Investing activities consisted of capital expenditures of $3.4 million,
which were  primarily for the purchase of machinery and equipment to upgrade and
expand the Company's pharmaceutical manufacturing capacity.

         Long-term debt decreased due to the  reclassification of a $2.3 million
term loan to a  current  liability,  which  the  Company  is in the  process  of
refinancing.

         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  intends to use its  available  cash to help in funding its
acquisitions.  As such,  cash has been  invested in  short-term,  highly  liquid
instruments.

         The Company  believes  that  existing  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  debt  obligations,  capital  improvements,
product development  activities and 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 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  facility  bear
interest at a rate which 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 this facility at September 30, 2001.

<PAGE>
                          PART II. - OTHER INFORMATION

Item 1.  Legal Proceedings
         -----------------

         ETHEX  Corporation,  a  wholly-owned  subsidiary  of the Company and KV
Pharmaceutical  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,  DPT  Laboratories,  Ltd.  and DFB
Pharmaceuticals,  Inc.  (d/b/a DFB Holding,  Inc.).  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  Ethezyme(TM)  and  Accuzyme(R)  products  are  enzymatic
debriding ointments that are used to treat wounds, pressure ulcers and burns.

         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 will enter a judgment after consideration of post-trial motions. The court
may or may not accept the jury's  verdicts.  The  court's  judgment  may then be
appealed.  The Company and its counsel believe that the jury's recommended award
is  excessive  and is not  sufficiently  supported  by the facts or the law. The
Company  intends to pursue  vigorously  post-trial  procedures  to challenge the
jury's findings and, if necessary, to appeal any adverse judgment that the court
may enter.

                                   SIGNATURES
                                   ----------

         Pursuant to the  requirements  of Section 13 or 15(d) 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.

                                        KV PHARMACEUTICAL COMPANY



Date:  November 14, 2001                By   /s/ Marc S. Hermelin
                                             -----------------------------------
                                             Vice Chairman of the Board
                                             (Principal Executive Officer)



Date:  November 14, 2001                By   /s/ Gerald R. Mitchell
                                             -----------------------------------
                                             Vice President, Treasurer and
                                             Chief Financial Officer
                                             (Principal Financial and
                                             Accounting Officer)