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Customer, Supplier and Product Concentration
 6 Months Ended
Jun. 30, 2020
Risks and Uncertainties [Abstract]  
Customer, Supplier and Product Concentration Customer, Supplier and Product Concentration
Customer Concentration

In the three and six month periods ended June 30, 2020 and 2019, a significant portion of the Company’s gross and net revenues reported were to three large wholesale drug distributors, and a significant portion of the Company’s accounts receivable as of June 30, 2020 and December 31, 2019, were due from these wholesale drug distributors as well. AmerisourceBergen Health Corporation (“Amerisource”), Cardinal Health, Inc. (“Cardinal”) and McKesson Drug Company (“McKesson”) collectively referred to herein as the “Big 3 Wholesalers”, 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, only one other individual customer accounted for 10% or more of gross sales and net revenue for the three and six month periods ended June 30, 2020.

If sales to the Big 3 Wholesalers were to diminish or cease, the Company believes that the end users of its products would find little difficulty obtaining the Company’s products from another distributor. The Company is subject to credit risk from its accounts receivable, heavily weighted to the Big 3 Wholesalers, but as of and for the three month periods ended June 30, 2020 and December 31, 2019, the Company has not experienced significant losses with respect to collection of these gross accounts receivable balances.
The following table sets forth the percentage of the Company's gross accounts receivable disaggregated by major customers as of June 30, 2020 and December 31, 2019:

June 30,
2020		December 31,
2019
Disaggregation of gross A/R by major customersGross
Accounts
Receivable		Gross
Accounts
Receivable %		Gross
Accounts
Receivable		Gross
Accounts
Receivable %
Amerisource$43,054  17.3 %$56,945  22.0 %
Cardinal28,880  11.6 %40,158  15.6 %
McKesson109,753  44.1 %118,258  45.8 %
Combined Total181,687  73.0 %215,361  83.4 %
All Others67,251  27.0 %42,812  16.6 %
Grand Total$248,938  100.0 %$258,173  100.0 %

The following table sets forth the percentage of the Company’s gross sales disaggregated by major customers for the three and six month periods ended June 30, 2020 and 2019:

Three Months Ended
June 30, 2020		Three Months Ended
June 30, 2019		Six Months Ended
June 30, 2020		Six Months Ended
June 30, 2019
Disaggregation of gross sales by major customersGross SalesGross Sales %Gross SalesGross Sales %Gross SalesGross Sales %Gross SalesGross Sales %
Amerisource$56,102  18.6 %$105,971  22.7 %$132,098  18.1 %$185,296  20.0 %
Cardinal50,192  16.7 %100,318  21.5 %117,233  16.1 %214,359  23.2 %
McKesson139,205  46.3 %183,436  39.4 %309,749  42.4 %374,812  40.6 %
Combined Total245,499  81.6 %389,725  83.6 %559,080  76.6 %774,467  83.8 %
All Others55,381  18.4 %76,284  16.4 %171,176  23.4 %150,182  16.2 %
Grand Total$300,880  100.0 %$466,009  100.0 %$730,256  100.0 %$924,649  100.0 %

The following table sets forth the Company’s net revenues disaggregated by major customers for the three and six month periods ended June 30, 2020 and 2019 (dollar amounts in thousands):

Three Months Ended
June 30, 2020		Three Months Ended
June 30, 2019		Six Months Ended
June 30, 2020		Six Months Ended
June 30, 2019
Disaggregation of net revenues by major customersNet RevenueNet Revenue % Net RevenueNet Revenue % Net RevenueNet Revenue % Net RevenueNet Revenue %
Amerisource$22,475  18.7%$40,275  22.6%$55,193  17.0%$70,371  20.5%
Cardinal19,789  16.4%28,337  15.9%45,178  13.9%58,098  16.9%
McKesson29,438  24.5%40,743  22.9%72,491  22.3%78,495  22.8%
Combined Total71,702  59.6%109,355  61.4%172,862  53.2%206,964  60.2%
All Others48,608  40.4%68,702  38.6%152,141  46.8%136,964  39.8%
Grand Total$120,310  100.0%$178,057  100.0%$325,003  100.0%$343,928  100.0%
Sales to the Big 3 Wholesalers primarily represent purchases of products in the Prescription Pharmaceuticals segment and generate the majority of the Prescription Pharmaceuticals segment revenue. The Prescription Pharmaceuticals segment revenue represented 86.8% and 88.9% of the consolidated net revenue for three month periods ended June 30, 2020 and 2019, respectively, while during the six month periods ended June 30, 2020 and 2019 the Prescription Pharmaceuticals segment revenue represented 87.3% and 89.1% of the consolidated net revenue, respectively. Chain pharmacies are the major customers in the Consumer Health segment. For more information, see Note 10 — Segment Information.

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. Certain of these ingredients and components are available from only a single source and, in the case of certain of the Company’s abbreviated new drug applications and new drug applications, 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. In addition, certain of the pharmaceutical products marketed by the Company are manufactured by a third party manufacturer, which serves as the Company’s sole source of that finished product. 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. Likewise, if the Company’s manufacturing partners experience any similar difficulties in obtaining raw materials or in manufacturing the finished product, the Company’s results of operations would be negatively impacted.

No individual supplier represented 10% or more of the Company’s purchases in the three and six month periods ended June 30, 2020 or 2019.

Product Concentration

In the three month periods ended June 30, 2020 and 2019, none of the Company's products represented 10% or
more of its total net revenue, while during the six month period ended June 30, 2020, one unapproved product, that has since been discontinued, represented approximately 11% of total net revenue and none above 10% during the comparative prior year period. The Company attempts to minimize the risk associated with product concentration by continuing to develop and acquire new products to add to its existing product portfolio.