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BUSINESS CONCENTRATIONS
12 Months Ended
Dec. 31, 2020
Risks and Uncertainties [Abstract]  
BUSINESS CONCENTRATIONS

NOTE 13 - BUSINESS CONCENTRATIONS

 

We purchase our prescription products from several suppliers with approximately 36%, 30% and 25% of our purchases supplied by three vendors each, respectively, during the year ended December 31, 2020, 24%, 27% and 35% of our purchases supplied by three vendors each, respectively, during the year ended December 31, 2019, and 43%, 33% and 24% of our purchases supplied by three vendors each, respectively, during the year ended December 31, 2018.

 

We sell our prescription products to wholesale distributors, specialty pharmacies, specialty distributors, and chain drug stores that generally sell products to retail pharmacies, hospitals, and other institutional customers. During the year ended December 31, 2020, three customers each accounted for more than 10% of our total product revenue. During each of the years ended December 31, 2019 and 2018, four customers each accounted for more than 10% of our total product revenue. Product revenue from the three customers combined accounted for approximately 63% of our product revenue for the year ended December 31, 2020. Product revenue from the four customers combined accounted for approximately 73% and 76% of our product revenue for the years ended December 31, 2019 and 2018, respectively.

 

During the year ended December 31, 2020, Cardinal Health accounted for approximately $17,489,000 of our product revenue, Pillpack, Inc. accounted for approximately $13,228,000 of our product revenue, and McKesson Corporation accounted for approximately $9,862,000 of our product revenue. During the year ended December 31, 2019, Pillpack, Inc. accounted for approximately $12,676,000 of our product revenue, Cardinal Health accounted for approximately $4,551,000 of our product revenue, AmerisourceBergen accounted for approximately $3,927,000 of our product revenue and McKesson Corporation accounted for approximately $3,911,000 of our product revenue. During the year ended December 31, 2018, Pillpack, Inc. accounted for approximately $5,075,000 of our product revenue, AmerisourceBergen accounted for approximately $3,246,000 of our product revenue and Cardinal Health accounted for approximately $2,308,000 of our product revenue, and McKesson Corporation accounted for approximately $1,610,000 of our product revenue.