Note 7 - Customer and Supplier Concentration

9 Months Ended

Sep. 30, 2014

Concentration Risk Disclosure [Text Block]

7. Customer and Supplier Concentration

Customer Concentrations

Three large wholesale drug distributors, AmerisourceBergen Corporation, or AmerisourceBergen, Cardinal Health, Inc. or Cardinal, and McKesson Corporation, or McKesson, are all distributors of the Company’s products, as well as suppliers of a broad range of health care products. Actavis, Inc. has exclusive marketing rights of the Company’s enoxaparin product to the U.S. retail pharmacy market. The Company considers these four customers to be its major customers, as each individually, and they collectively, represented a significant percentage of the Company’s net revenue for the three and nine months ended September 30, 2014 and 2013 and accounts receivable as of September 30, 2014 and December 31, 2013. The following table provides accounts receivable and net revenues information for these major customers:

	% of Total Accounts Receivable						% of Net Revenue						% of Net Revenue
	September 30,			December 31,			Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013			2014			2013
Actavis, Inc.		31	%		44	%		35	%		32	%		33	%		34	%
AmerisourceBergen		10	%		11	%		14	%		15	%		15	%		15	%
Cardinal Health		10	%		7	%		13	%		13	%		14	%		14	%
McKesson		16	%		13	%		19	%		29	%		23	%		26	%

Supplier Concentrations

The Company depends on suppliers for raw materials, active pharmaceutical ingredients, and other components that are subject to stringent U.S. Food and Drug Administration, or FDA, requirements. Some of these materials may only be available from one or a limited number of sources. Establishing additional or replacement suppliers for these materials may take a substantial period of time, as suppliers must be approved by the FDA. Furthermore, a significant portion of raw materials may only be available from foreign sources. If the Company is unable to secure, on a timely basis, sufficient quantities of the materials it depends on to manufacture and market its products, it could have a materially adverse effect on the Company’s business, financial condition, and results of operations.

- Definition

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

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