Accounts Receivable

9 Months Ended

Sep. 30, 2011

Accounts Receivable

Accounts Receivable

D. Accounts Receivable

Our accounts receivable were $7.1 million and $5.8 million as of September 30, 2011 and December 31, 2010, respectively, and primarily represented amounts due from wholesalers and distributors to whom we sell Feraheme directly. Accounts receivable are recorded net of reserves for estimated chargeback obligations, prompt payment discounts and any allowance for doubtful accounts. Reserves for other sales-related allowances such as rebates, distribution and other fees, and product returns are included in accrued expenses in our condensed consolidated balance sheets.

As part of our credit management policy, we perform ongoing credit evaluations of our customers, and we have not required collateral from any customer. To date, we have not experienced significant bad debts. Accordingly, we have not established an allowance for doubtful accounts at either September 30, 2011 or December 31, 2010. If the financial condition of any of our significant customers was to deteriorate and result in an impairment of its ability to make payments owed to us, an allowance for doubtful accounts may be required which could have a material effect on earnings in the period of any such adjustment.

Customers which represented greater than 10% of our accounts receivable balances as of September 30, 2011 and December 31, 2010 were as follows:

	September 30, 2011		December 31, 2010
AmerisourceBergen Drug Corporation	53	%	65	%
McKesson Corporation	18	%	10	%
Cardinal Health, Inc.	14	%	14	%
Metro Medical Supply, Inc.	<10	%	18	%