Accounts Receivable

3 Months Ended

Mar. 31, 2012

Accounts Receivable

Accounts Receivable

D.Accounts Receivable

Our accounts receivable were $6.3 million and $5.9 million as of March 31, 2012 and December 31, 2011, 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 March 31, 2012 or December 31, 2011. 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 March 31, 2012 and December 31, 2011were as follows:

	March 31, 2012		December 31, 2011
AmerisourceBergen Drug Corporation	48	%	44	%
McKesson Corporation	27	%	33	%
Cardinal Health, Inc.	18	%	15	%