Concentrations

12 Months Ended

Dec. 31, 2012

Concentrations

Note 15—Concentrations

Generally, the Company does not require collateral from its customers; however, collateral or other security for accounts receivable may be obtained in certain circumstances when considered. For the years ended December 31, 2012, 2011 and 2010, the Company derived 82.5%, 82.8% and 82.6% of its revenues from its top five customers. At December 31, 2012, 2011 and 2010 those customers represented, in the aggregate, 79.7%, 85.1% and 60.6% of the consolidated accounts receivable balance. More specifically, the Company sells its products in the United States mainly to three drug wholesaler customers and various specialty distributors. The percentage of gross sales and the approximate percentage of aggregate accounts receivable for these wholesalers and specialty distributors for each of the years ended December 31, 2012, 2011 and 2010 are as follows:

Percentage of Gross Sales for the Years Ended:							Percentage of Accounts Receivable at December 31,
Distribution Channel	2012		2011		2010		Distribution Channel	2012		2011		2010
		%		%		%			%		%		%
Wholesalers:							Wholesalers:
AmerisourceBergen Corp.		20.1		17.7		13.9	AmerisourceBergen Corp.		10.3		5.1		4.5
Cardinal Health		19.4		22.5		20.9	Cardinal Health		43.6		35.3		27.5
McKesson Corp		18.5		17.9		38.4	McKesson Corp		7.5		14.8		—
Specialty Distributors:							Specialty Distributors:
Mckesson Specialty		13.1		11.0		3.6	Mckesson Specialty		9.4		15.0		23.7
Metro Medical		11.4		6.7		—	Metro Medical		8.8		9.0		—
Besse Medical		7.3		13.7		—	Besse Medical		3.8		12.4		23.7
Other Distributors		10.2		10.5		23.2	Other Distributors		16.6		8.4		20.6

If for any reason the Company is unable to retain these third-party distributors and manufacturers, or obtain alternate third-party distributors and manufacturers on commercially acceptable terms, the Company may not be able to distribute its products as planned. If the Company encounters delays or difficulties with contract manufacturers in producing KRYSTEXXA, the sale of this product would be adversely affected.