Related Party Transactions

9 Months Ended

Mar. 31, 2016

Related Party Transactions

Related Party Transactions

Note 21.  Related Party Transactions

The Company had sales of $1.3 million and $226 thousand during the three months ended March 31, 2016 and 2015, respectively, to a generic distributor, Auburn Pharmaceutical Company (“Auburn”).  Sales to Auburn for the nine months ended March 31, 2016 and 2015 were $2.2 million and $1.3 million, respectively.  Jeffrey Farber, Chairman of the Board, is the owner of Auburn.  Accounts receivable includes amounts due from Auburn of $1.1 million and $727 thousand at March 31, 2016 and June 30, 2015, respectively.

As part of the acquisition of KUPI, the Company issued $200.0 million unsecured 12.0% Senior Notes and a warrant with a fair value of $29.2 million to UCB.  Accounts payables include amounts due to UCB of $2.1 million at March 31, 2016.  Purchases of authorized generics from UCB totaled $4.3 million and $5.6 million for the three and nine months ended March 31, 2016, respectively.  Accounts receivable includes amounts due from UCB of $3.0 million.  Sales to UCB for the three and nine months ended March 31, 2016 were $3.0 million and $3.0 million, respectively.

In the Company’s opinion, the terms of these transactions were not more favorable to Auburn or UCB than would have been to a non-related party.