Related Party Transactions

9 Months Ended

Mar. 31, 2019

Related Party Transactions

Related Party Transactions

Note 20.  Related Party Transactions

The Company had sales of $0.9 million and $1.0 million during the three months ended March 31, 2019 and 2018, respectively, to a generic distributor, Auburn Pharmaceutical Company (“Auburn”), which is a member of the Premier Buying Group. Sales to Auburn for the nine months ended March 31, 2019 and 2018 were $2.4 million and $3.0 million, respectively.  Jeffrey Farber, a current board member, is the owner of Auburn.  Accounts receivable includes amounts due from Auburn of $0.8 million and $0.6 million at March 31, 2019 and June 30, 2018, respectively. 

The Company also had sales of $0.5 million and $0.4 million during the three months ended March 31, 2019 and 2018, respectively, to a generic distributor, KeySource, which is a member of the OptiSource Buying Group.  Sales to KeySource for the nine months ended March 31, 2019 and 2018 were $2.0 million and $1.4 million, respectively.   Albert Paonessa, a current board member, was appointed the CEO of KeySource in May 2017.  Accounts receivable includes amounts due from KeySource of $0.6 million and $0.5 million as of March 31, 2019 and June 30, 2018, respectively.

The Company incurred no expenses during the three months ending March 31, 2019 and incurred $0.4 million of expenses during the nine months ended March 31, 2019, respectively, for online medical benefit services provided by a subsidiary of a variable interest entity.  See Note 13 “Commitments” for more information. There were no amounts due to the variable interest entity as of March 31, 2019. The liability was not material to the financial position of the Company as of June 30, 2018.