Customer, Supplier and Product Concentration

12 Months Ended

Dec. 31, 2013

Customer, Supplier and Product Concentration [Abstract]

Customer, Supplier and Product Concentration

Note 18 — Customer, Supplier and Product Concentration

Customer Concentration

In 2013, 2012 and 2011, a significant portion of the Company’s gross and net sales reported for its Ophthalmic and Hospital drugs & injectables segments were through three large wholesale drug distributors, and a significant portion of  the Company’s accounts receivable as of December 31, 2013, 2012 and 2011 were due from these wholesale drug distributors as well. AmerisourceBergen Health Corporation (“Amerisource”), Cardinal Health, Inc. (“Cardinal”) and McKesson Drug Company (“McKesson”) are all distributors of the Company’s products, as well as suppliers of a broad range of health care products.  Aside from these three wholesale drug distributors, no other customers accounted for more than 10% of gross sales, net revenues or gross trade receivables for the indicated dates and periods.

      The following table sets forth the percentage of the Company’s gross and net sales and gross accounts receivable attributable to these three distributors for the periods indicated:

	2013									2012									2011
	Gross Sales			Net Revenue			Gross Accounts Receivable			Gross Sales			Net Revenue			Gross Accounts Receivable			Gross Sales			Net Revenue			Gross Accounts Receivable
Amerisource		19	%		14	%		25	%		19	%		14	%		29	%		23	%		23	%		29	%
Cardinal		23	%		16	%		26	%		23	%		17	%		30	%		27	%		25	%		34	%
McKesson		16	%		11	%		12	%		16	%		11	%		14	%		16	%		15	%		9	%
Total		58	%		41	%		63	%		58	%		42	%		73	%		66	%		63	%		72	%

If sales to Amerisource, Cardinal or McKesson were to diminish or cease, the Company believes that the end users of its products would find little difficulty obtaining the Company’s products either directly from the Company or from another distributor.

Supplier Concentration

The Company requires a supply of quality raw materials and components to manufacture and package pharmaceutical products for its own use and for third parties with which it has contracted. The principal components of the Company’s products are active and inactive pharmaceutical ingredients and certain packaging materials. Many of these components are available from only a single source and, in the case of many of the Company’s ANDAs and NDAs, only one supplier of raw materials has been identified. Because FDA approval of drugs requires manufacturers to specify their proposed suppliers of active ingredients and certain packaging materials in their applications, FDA approval of any new supplier would be required if active ingredients or such packaging materials were no longer available from the specified supplier. The qualification of a new supplier could delay the Company’s development and marketing efforts. If for any reason the Company is unable to obtain sufficient quantities of any of the raw materials or components required to produce and package its products, it may not be able to manufacture its products as planned, which could have a material adverse effect on the Company’s business, financial condition and results of operations.

No individual supplier represented 10% or more of the Company’s purchases in any of the years ended December 31, 2013, 2012 or 2011.

Product Concentration

During the years 2013 and 2012, one of the Company’s injectable products represented 11.8% and 12.5% of the Company’s total net revenue, respectively.  For the year 2011, one of the Company’s ophthalmic products represented 10.4% of the Company’s total net revenue for that year.  No other products represented 10% or more of the Company’s net revenue in 2013, 2012 or 2011.  The Company attempts to minimize the risk associated with product concentrations by continuing to acquire and develop new products to add to its portfolio.