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Customer and Supplier Concentration

9 Months Ended

Sep. 30, 2023

Note 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. Lilly currently manufactures and sells BAQSIMI^® on the Company’s behalf pursuant to the terms of the TSA (See Note 4 for additional information). The Company considers these four customers to be its major customers, as each individually, and these customers collectively, represented a significant percentage of the Company’s net revenue for the three and nine months ended September 30, 2023 and 2022, and accounts receivable as of September 30, 2023 and December 31, 2022, respectively. The following table provides accounts receivable and net revenue information for these major customers:


	% of Total Accounts				% of Net
	Receivable				Revenue
					Three Months Ended				Nine Months Ended
	September 30,		December 31,		September 30,				September 30,
	2023		2022		2023		2022		2023		2022
McKesson	24	%	32	%	22	%	23	%	25	%	21	%
AmerisourceBergen	9	%	16	%	17	%	23	%	20	%	23	%
Cardinal Health	17	%	19	%	15	%	17	%	16	%	16	%
Lilly	24	%	—		16	%	—		6	%	—

Supplier Concentrations

The Company depends on suppliers for raw materials, APIs, and other components that are subject to stringent 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.