ST. LOUIS (AP) — A settlement between K-V Pharmaceutical Co. and Hologic has been approved by a bankruptcy court.

K-V filed for Ch. 11 bankruptcy protection in August. The St. Louis company owed Hologic Inc. a milestone payment on preterm birth drug Makena, which Hologic developed.

K-V said Friday that the U. S. Bankruptcy Court for the Southern District of New York approved the settlement and approved an $85 million debtor-in-possession financing in part to help fund the settlement.

The financing includes certain bankruptcy milestones, such as K-V must file a reorganization plan in January.