Note 18. Segment Information and Concentration of Customers and Suppliers

The Company operates in one business segment—the development and commercialization of novel therapeutic products. Therefore, results of operations are reported on a consolidated basis for purposes of segment reporting, consistent with internal management reporting. Disclosures about product revenues by geographic area; revenues and accounts receivable from major customers, and major suppliers are presented below.

Geographic Information

Outside the United States, the Company sells products principally in the EU. The geographic classification of product sales was based on the location of the customer. The geographic classification of all other revenues was based on the domicile of the entity from which the revenues were earned.

Product revenue by geographic region is as follows for the years ended December 31 (in thousands):

	2014							2013
	U.S.		ROW			Total		U.S.		ROW			Total
Qsymia—Net product revenue	$	45,277	$	—		$	45,277	$	23,718	$	—		$	23,718
STENDRA/SPEDRA—License and milestone revenue		15,406		23,208			38,614		30,393		25,445			55,838
STENDRA/SPEDRA—Supply revenue		9,059		17,460			26,519		1,080		446			1,526
STENDRA/SPEDRA—Royalty revenue		2,176		1,595			3,771		—		—			—

Total revenue	$	71,918	$	42,263	(1)	$	114,181	$	55,191	$	25,891	(2)	$	81,082

	2012
	U.S.		ROW		Total
Qsymia—Net product revenue	$	2,012	$	—	$	2,012
STENDRA/SPEDRA—License and milestone revenue		—		—		—
STENDRA/SPEDRA—Supply revenue		—		—		—
STENDRA/SPEDRA—Royalty revenue		—		—		—

Total revenue	$	2,012	$	—	$	2,012

(1)	$37.2 million of which is attributable to Germany.
(2)	$21.0 million of which is attributable to Germany.

Major customers

Revenues from significant customers as a percentage of total revenues for the years ended December 31, 2014, 2013 and 2012, is as follows:

	2014			2013			2012
Auxilium		23	%		39	%		—	%
Menarini		32	%		26	%		—	%
Amerisource Bergen		14	%		—	%		—	%
McKesson		13	%		2	%		—	%
Cardinal Health, Inc.		11	%		4	%		—	%
Express Scripts, Inc.		1	%		3	%		10	%
CVS		—	%		9	%		50	%
Walgreens		—	%		6	%		39	%

Accounts receivable at December 31, 2014 and 2013 by significant customer as a percentage of the total gross accounts receivable balance are as follows:

	2014			2013
Menarini		25	%		41	%
Cardinal Health, Inc.		20	%		12	%
Amerisource Bergen		19	%		26	%
McKesson		18	%		13	%
Auxilium		16	%		3	%

Major suppliers

The Company relies on third-party sole-source manufacturers to produce its clinical trial materials, raw materials and finished goods. Catalent Pharma Solutions, LLC, or Catalent, which supplied the product for the Phase 3b/4 program for Qsymia, is the Company's sole source of clinical and commercial supplies for Qsymia. MTPC is currently the Company's sole-source supplier for the API and the tablets for STENDRA (avanafil). In August 2012, the Company entered into an amendment to its agreement with MTPC that permits the Company to manufacture the API and STENDRA tablets for avanafil itself or through third-party suppliers at any time. The transition away from MTPC supply will need to occur on or before June 2015. The Company does not have any manufacturing facilities and intends to continue to rely on third parties for the supply of the starting materials, API and tablets. Third-party manufacturers may not be able to meet the Company's needs with respect to timing, quantity or quality. In July 2013, the Company entered into a Commercial Supply Agreement with Sanofi Chimie to manufacture and supply the API for our drug avanafil on an exclusive basis in the United States and other territories and on a semi-exclusive basis in Europe, including the EU, Latin America and other territories. In November 2013, the Company entered into a Manufacturing and Supply Agreement with Sanofi Winthrop Industrie to manufacture and supply the avanafil tablets on an exclusive basis in the United States and other territories and on a semi-exclusive basis in Europe, including the EU, Latin America and other territories.

The Company has entered into an agreement with PDI, Inc., or PDI, a third-party contract sales organization, to assist with the hiring of sales representatives and the promotion of Qsymia to physicians. Although alternative third-party contract sales organizations exist, the Company would be adversely affected if PDI does not perform its obligations under the agreement.

During the years ended December 31, 2014, 2013 and 2012, the Company incurred expenses for work performed by a third-party clinical research organization, or CRO, for Qsymia and STENDRA post-approval studies that accounted for 27%, 29% and 13%, respectively, of total research and development expenses.