MCKESSON CORP

Sales to our largest customer, CVS Health Corporation (“CVS”), accounted for approximately 24% of our total consolidated revenues in fiscal 2026.

Any significant loss of third-party payor business could have a material adverse effect on the Company’s business and results of operations.During fiscal 2023, the Company purchased brand and generic pharmaceuticals, which amounted to approximately 98% of the dollar volume of its prescription drugs from McKesson Corporation (“McKesson”) under its expanded agreement executed on February 17, 2014 and amended in fiscal 2019 for its pharmaceutical purchasing and distribution whereby McKesson assumed responsibility for purchasing essentially all of the brand and generic medications the Company dispenses as well as providing a new direct store delivery model to all of the Company’s stores.

Any significant loss of third-party payor business could have a material adverse effect on the Company’s business and results of operations.During fiscal 2022, the Company purchased brand and generic pharmaceuticals, which amounted to approximately 99% of the dollar volume of its prescription drugs from McKesson Corporation (“McKesson”) under its expanded agreement executed on February 17, 2014 and amended in fiscal 2019 for its pharmaceutical purchasing and distribution whereby McKesson assumed responsibility for purchasing essentially all of the brand and generic medications the Company dispenses as well as providing a new direct store delivery model to all of the Company’s stores.

McKesson 47 % 43 %

McKesson Corporation 43%; and AmerisourceBergen Corporation 31%.

McKesson 38 % 43 % 42 % 35 %

McKesson 42 % 31 % 43 % 33 %

McKesson 43 % 38 %

McKesson 43 % 36 %

McKesson Corporation 46 % 31 % 47 % 35 %

McKesson Corporation 48 % 43 % 39 % 44 %

McKesson Corporation 42 % 42 %

McKesson Corporation 45% 43%

McKesson Corporation 31 % 49 % 35 % 46 %

McKesson Corporation 43 % 49 % 44 % 46 %

McKesson Corporation 49 % 44 % 46 % 45 %

McKesson Specialty Care Distribution Corporation 42 % 45 %

McKesson Corporation 45 % 43 % 31 %

McKesson Specialty Care Distribution Corporation 49 % 44 % 46 % 38 %

McKesson Specialty Care Distribution Corporation 44 % 34 % 45 % 36 %

McKesson Specialty Care Distribution Corporation 45 % 38 %

McKesson Specialty Care Distribution Corporation 43 % 31 % 20 %

McKesson Specialty Care Distribution Corporation 44 % 35 % 38 % 17 %

McKesson Specialty Care Distribution Corporation 34 % 33 % 36 % 13 %

McKesson Specialty Care Distribution Corporation 31 % 20 % 23 %

McKesson Specialty Care Distribution Corporation 35 % 34 % 17 % 20 %

McKesson Specialty Care Distribution Corporation 33 % 41 % 13 % 16 %

McKesson Specialty Care Distribution Corporation 9% 24%

McKesson Specialty Care Distribution Corporation 20 % 23 % 30 %

McKesson Specialty Care Distribution Corporation 34 % 22 % 20 % 27 %

7.Revenues Revenues disaggregated by category were as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Product sales: Gross product sales $18,353 $ 12,481 $33,724 $ 22,397 Discounts and allowances (3,379) (2,308) (6,070) (4,170) Product sales, net $ 14,974 $ 10,173 $ 27,654 $ 18,227 Revenues from collaborations: License revenues — — 39,858 4,499 Research and development services and others 1,047 234 4,270 305 Total revenues from collaborations 1,047 234 44,128 4,804 Total revenues $ 16,021 $ 10,407 $ 71,782 $ 23,031 The following table summarizes revenues from each of our customers who individually accounted for 10% or more of our total revenues (as a percentage of total revenues): Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 ASD Healthcare and Oncology Supply 47% 48% 20% 40% McKesson Specialty Care Distribution Corporation 41% 40% 16% 31% Cardinal Healthcare 5% 10% 2% — Grifols 7% — 61% 20% We commenced commercial sale of TAVALISSE in the U.S. in May 2018 after FDA approval in April 2018.

REVENUESRevenues disaggregated by category were as follows (in thousands): Year Ended December 31, 2020 2019 2018Product sales: Gross product sales $76,470 $ 53,082 $ 16,953Discounts and allowances (14,774) (9,310) (3,006)Product sales, net $ 61,696 $ 43,772 $ 13,947 Revenues from collaborations: License revenues 40,358 $ 8,696 30,562Development milestones 2,100 5,500 —Research and development services and others 4,467 1,320 —Total revenues from collaborations 46,925 15,516 30,562Total revenues $ 108,621 $ 59,288 $ 44,509 The following table summarizes revenues from each of our customers who individually accounted for 10% or more (wherein * denotes less than 10%) of our gross revenues (as a percentage of gross revenues): Year Ended December 31, 2020 2019 2018Grifols 41% * —ASD Healthcare and Oncology Supply 30% 37% 17%McKesson Specialty Care Distribution Corporation 23% 30% 11%Kissei — * 69% Our first and only FDA approved product, TAVALISSE®, was approved by the U.S. FDA in April 2018.

McKesson Specialty Care Distribution Corporation 22% 33% 27% 38%

McKesson Specialty Care Distribution Corporation 40% 52% 31% 52%

For continuing operations, gross product revenues by significant customers as a percentage of total gross product revenues were as follows: Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 McKesson Corporation 42% 44% 40% 45%Cencora, Inc. 40% 39% 41% 37%Cardinal Health, Inc. 16% 15% 18% 17% Product Sales Discounts and AllowancesThe total provision related to sales made in the prior period was $(13.0) million and $(8.7) million for the three months ended June 30, 2026 and 2025, respectively.

The Company’s net revenue from continuing operations was as follows: Three Months Ended March 31, (in thousands) 2026 2025LOQTORZI $ 11,803 $ 7,348Other revenue 507 251 Total net revenue $ 12,310 $ 7,599 For continuing operations, gross product revenues by significant Customers as a percentage of total gross product revenues were as follows: Three Months Ended March 31, 2026 2025 McKesson Corporation 37% 46%Cencora, Inc. 42% 33%Cardinal Health, Inc. 20% 20% Product Sales Discounts and AllowancesChargebacks and discounts for prompt payment are recorded as a reduction in trade receivables, and the remaining reserve balances are classified as current liabilities on the condensed consolidated balance sheets.In connection with the sales of the CIMERLI ophthalmology franchise and the YUSIMRY franchise in 2024 and the UDENYCA franchise in 2025, the Company retained and continued to be responsible for sales discounts and allowance liabilities incurred prior to March 1, 2024 for CIMERLI, June 26, 2024 for YUSIMRY and April 11, 2025 for UDENYCA.

McKesson Corporation 43 % 43 %

McKesson Corporation 44 % 48 % 44 % 43 %

McKesson Corporation 44 % 44 % 45 % 39 %

McKesson Corporation 46 % 29 %

McKesson Corporation 42 % 40 % 38 %

Gross product revenues by significant customer as a percentage of total gross product revenues were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 McKesson Corporation 45% 44% 41% 38%Cencora (previously known as AmeriSource-Bergen Corporation) 33% 41% 39% 45%Cardinal Health, Inc. 21% 13% 18% 15% Product Sales Discounts and AllowancesThe total provision related to sales made in the prior period was $0.3 million and $1.1 million for the three months ended September 30, 2024 and 2023, respectively.

Gross product revenues by significant customer as a percentage of total gross product revenues were as follows: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 McKesson Corporation 38% 34% 40% 34%Cencora (previously known as AmeriSource-Bergen Corporation) 41% 50% 41% 47%Cardinal Health, Inc. 19% 14% 17% 17% Product Sales Discounts and AllowancesThe total provision related to sales made in the prior period was $2.8 million and $3.1 million for the three months ended June 30, 2024 and 2023, respectively.

McKesson Corporation 42 % 35 %

McKesson Corporation 44 % 37 % 38 % 37 %

McKesson Corporation 34 % 36 % 34 % 37 %

McKesson Corporation 35 % 39 %

All net product revenue was generated in the United States, and the Company’s net revenue was as follows: Year Ended December 31, (in thousands) 2023 2022 2021Products UDENYCA $ 127,064 $ 203,814 $ 326,509 CIMERLI 125,388 6,946 — YUSIMRY 3,574 — — LOQTORZI 554 — —Total net product revenue 256,580 210,760 326,509Other 664 282 42 Total net revenue $ 257,244 $ 211,042 $ 326,551 Gross product revenues by significant customer as a percentage of total gross product revenues were as follows: Year Ended December 31, 2023 2022 2021 McKesson Corporation 40% 38% 39%Cencora (previously known as AmeriSource-Bergen Corporation) 43% 44% 39%Cardinal Health, Inc. 15% 17% 20%

McKesson Corporation 37 % 40 % 37 % 39 %

McKesson Corporation 36 % 39 % 37 % 39 %

McKesson Corporation 39 % 39 %

The Company’s net revenue was as follows: Year Ended December 31, (in thousands) 2022 2021 2020Products UDENYCA $ 203,814 $ 326,509 $ 475,824 CIMERLI 6,946 — —Total net product revenue 210,760 326,509 475,824Other 282 42 — Total net revenue $ 211,042 $ 326,551 $ 475,824 Revenue by significant Customer was as follows: Year Ended December 31, 2022 2021 2020 McKesson Corporation 38% 39% 38%AmeriSource-Bergen Corporation 44% 39% 37%Cardinal Health, Inc. 17% 20% 23%

Revenue by significant Customer was distributed as follows: Year Ended December 31, 2021 2020 2019 McKesson Corporation 39% 38% 42%AmeriSource-Bergen Corporation 39% 37% 33%Cardinal Health, Inc. 20% 23% 23%Others 2% 2% 2%Total revenue 100% 100% 100%

McKesson 37 % 40 % 36 % 37 %

McKesson 39 % 41 %

McKesson 45 % 39 % 40 % 40 %

McKesson 40 % 37 % 37 % 40 %

McKesson 34 % 43 %

The Company recognized royalty revenue from distribution partners of $3,818,000 and $3,218,000 in the six months ended June 30, 2025 and 2024, respectively.Product sales to certain distribution partners that accounted for more than 10% of net product revenue for the three and six months ended June 30, 2025 and 2024 consists of the following: Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 McKesson 38% 38% 34% 43%Cardinal Health 27 18 22 19 INPHARMUS 10 — 15 — Cencora 11 11 13 17 SciClone 9 15 8 8 Revenue from product sales is recorded as net of applicable provisions for rebates, chargebacks, discounts, distribution-related fees and other sales-related deductions.

McKesson 30 % 51 %

McKesson, Cardinal Health and Cencora accounted for 41%, 20% and 16%, respectively of the Company’s net product revenue for the year ended December 31, 2024.

The Company recognized royalty revenue from distribution partners of $4,351,000 and $3,814,000 in the nine months ended September 30, 2024 and 2023, respectively.Product sales to certain distribution partners that accounted for more than 10% of total product revenue, net, for the three and nine months ended September 30, 2024 and 2023 consists of the following: Three months ended September 30, Nine months ended September 30, 2024 2023 2024 2023 McKesson 48% 48% 45% 45%Cardinal Health 21 14 20 13 Cencora 15 18 17 22 WEP — 15 3 9 As of September 30, 2024, the Company had recorded on the Consolidated Balance Sheets accounts receivable of approximately $19,916,000, of which $2,816,000 represents an unbilled portion to which the Company has unconditional rights to collect the consideration related to product sales to the Company’s distributor in Western Europe, WEP.Revenue from product sales is recorded as net of applicable provisions for rebates, chargebacks, discounts, distribution-related fees and other sales-related deductions.

McKesson, Cencora, WEP and Cardinal Health accounted for 46%, 22%, 10% and 13%, respectively, of the Company’s net product revenue for the year ended December 31, 2023.

McKesson 38 % 46 % 43 % 44 %

McKesson, AmerisourceBergen, Cardinal Health and WEP accounted for 45%, 29%, 13% and 12%, respectively, of the Company’s product revenue, net for the three months ended March 31, 2023.

McKesson, AmerisourceBergen, and Cardinal Health accounted for 71%, 17%, and 10%, respectively, of the Company’s product revenue, net for the year ended December 31, 2022.

McKesson and AmerisourceBergen accounted for 78% and 14%, respectively, of the Company’s product revenue, net, for the three months ended September 30, 2022.

McKesson, AmerisourceBergen and Cardinal Health accounted for 71%, 10% and 11%, respectively, of the Company’s product revenue, net, for the three months ended June 30, 2022.

McKesson, AmerisourceBergen, and Cardinal Health accounted for 60%, 25%, and 11%, respectively, of our gross product revenue for the three months ended March 31, 2022.

McKesson and AmerisourceBergen accounted for 73.2% and 17.6%, respectively, of our gross product revenue for the year ended December 31, 2021.

McKesson and AmerisourceBergen accounted for 66% and 24%, respectively, of the Company’s gross product revenue for the three months ended September 30, 2021.

Mckesson and AmerisourceBergen accounted for 75% and 19%, respectively, of the Company’s gross product revenue for the three months ended June 30, 2021.

Mckesson and Cardinal Health accounted for 80% and 16%, respectively, of our gross product revenue for the three months ended March 31, 2021.

McKesson Corporation 36 % 38 % 36 % 37 %

McKesson Corporation 31 % 35 % 36 % 36 %

McKesson Corporation 40 % 37 %

McKesson Corporation 36 % 26 %

McKesson Corporation 38 % 25 % 37 % 26 %

McKesson Corporation 35 % 26 % 36 % 27 %

McKesson Corporation 37% 27%

McKesson Corporation 36 % 26 % 24 %

McKesson Corporation 25% 26% 26% 23%

McKesson Corporation 26% 26% 27% 22%

McKesson Corporation 22 % 14 %

McKesson Corporation 26 % 24 % 14 %

McKesson Corporation 19 % 11 % 12 %

McKesson Corporation 22 % 22 %

McKesson Corporation 24 % 17 % 21 %

McKesson Corporation 36 % 34 % 33 %

McKesson Corporation 34 % 33 % 32 %

McKesson Corporation 33 % 32 % 32 %

McKesson Corporation 32 % 32 % 31 %

McKesson Corporation 32 % 31 % 26 %

McKesson Corporation 35 % 30 % 37 % 46 %

McKesson Corporation 32 % 34 %

McKesson Corporation 32 % 34 % 29 % 33 % 22 %

McKesson Corporation 31 % 30 % 39 % 42 %

McKesson Corporation 30 % 21 % 42 % 12 %

McKesson Corporation 21 % 28 % 12 % 25 %

Consolidated revenueAccounts receivable related to product salesYear Ended December 31,Year Ended December 31,2022202120222021AmerisourceBergen Corporation28 %26 %21 %29 %McKesson Corporation28 %24 %25 %23 %Cardinal Health23 %34 %42 %44 %All others21 %16 %12 %4 %Total100 %100 %100 %100 %

McKesson 27 % 25 % 24 %

McKesson Corporation 25 % 26 % 32 %

202220212020AmerisourceBergen Corporation35 %36 %33 %McKesson Corporation26 %32 %27 %Cardinal Health, Inc.20 %22 %24 %

202120202019AmerisourceBergen Corporation36 %33 %34 %McKesson Corporation32 %27 %26 %Cardinal Health, Inc.22 %24 %25 %

McKesson Corporation 27 % 26 % 27 %

McKesson Corporation 26 % 27 % 25 %

McKesson Corporation 27 % 25 % 27 %

McKesson, Inc. 25 % 23 % 16 %

McKesson, Inc. 23 % 16 % 8 %

McKesson, Inc. 17 % 8 % 9 %

McKesson, Inc. 8 % 9 % 16 %

McKesson, Inc. 9 % 16 % 15 %

McKesson, Inc. 16 % 15 % 13 %

McKesson 29 % 28 % 24 % 24 % 22 % 24 %

McKesson 23 % 28 % 20 % 24 %

McKesson 24 % 25 % 25 %

McKesson 26 % 34 % 22 % 26 % 23 % 25 %

McKesson 29 % 34 % 24 % 26 % 24 % 24 %

McKesson 29 % 34 % 24 % 22 %

McKesson 29 % 26 % 26 % 22 % 25 % 25 %

McKesson 30 % 26 % 26 % 31 % 24 % 27 %

McKesson 27 % 26 % 22 % 23 %

McKesson Corporation 25 % 25 % 22 %

McKesson 24 % 32 % 22 % 23 % 25 % 21 %

McKesson 40 % 32 % 31 % 22 % 27 % 20 %

McKesson 31 % 32 % 23 % 18 %

McKesson Corporation 25 % 22 % 21 %

McKesson 29 % 30 % 23 % 21 % 21 % 20 %

McKesson 23 % 30 % 22 % 18 % 20 % 19 %

McKesson 23 % 30 % 18 % 20 %

McKesson Corporation 22 % 21 % 22 %

McKesson Corporation 21 % 22 % 25 %

McKesson Corporation (“McKesson”) 24 % 23 % 24 %

McKesson Corporation 22 % 22 % 21 % 20 %

McKesson Corporation 20 % 20 % 20 % 20 %

McKesson Corporation 20 % 20 %

McKesson Corporation 20 % 21 % 20 %

McKesson Corporation 21 % 20 % 20 %

McKesson Corporation 22 % 21 % 20 % 18 %

McKesson Corporation 20 % 17 % 20 % 17 %

McKesson Corporation 20 % 17 %

McKesson Corporation 20 % 20 % 20 %

McKesson Corporation 21 % 22 % 18 % 22 %

McKesson Corporation 17 % 23 % 17 % 22 %

McKesson Corporation 17 % 21 %

McKesson Corporation 20 % 20 % 22 %

McKesson Corporation 22 % 23 % 22 % 21 %

McKesson Corp. 23 % 20 % 22 % 20 %

McKesson Corp. 21 % 20 %

McKesson Corporation 20 % 22 % 21 %

McKesson Corp. 23 % 22 % 21 % 21 %

McKesson Corp. 20 % 21 % 20 % 21 %

McKesson Corp. 20 % 20 %

McKesson Corp. 22 % 21 % 23 %

McKesson Corp. 22 % 25 % 21 % 23 %

McKesson Corp. 21 % 23 % 21 % 22 %

McKesson Corp. 20 % 20 %

McKesson Corp. 21 % 23 % 22 %

McKesson Corporation 24 % 25 % 28 %

McKesson Corporation 24 % 24 % 24 % 25 %

McKesson Corporation 24 % 25 % 24 % 25 %

McKesson Corporation 24 % 25 %

Three Months Ended September 30,Nine Months Ended September 30,2023202220232022Besse Medical, a subsidiary of Cencora, Inc.53 %56 %52 %56 %McKesson Corporation24 %28 %25 %29 %

Three Months Ended June 30,Six Months Ended June 30,2023202220232022Besse Medical, a subsidiary of AmerisourceBergen Corporation51 %57 %51 %56 %McKesson Corporation25 %28 %25 %29 %

Three Months Ended March 31,20232022Besse Medical, a subsidiary of AmerisourceBergen Corporation52 %55 %McKesson Corporation25 %30 %

McKesson Corporation 25 % 28 % 18 %

Three Months Ended September 30,Nine Months Ended September 30,2022202120222021Besse Medical, a subsidiary of AmerisourceBergen Corporation56 %40 %56 %33 %McKesson Corporation28 %24 %29 %20 %U.S. government— %25 %— %38 %

Three Months Ended June 30,Six Months Ended June 30,2022202120222021Besse Medical, a subsidiary of AmerisourceBergen Corporation57 %22 %56 %30 %McKesson Corporation28 %14 %29 %19 %U.S. government— %57 %— %43 %

Three Months Ended March 31,20222021Besse Medical, a subsidiary of AmerisourceBergen Corporation55 %46 %McKesson Corporation30 %29 %U.S. government— %13 %

Year Ended December 31,202220212020Besse Medical, a subsidiary of AmerisourceBergen Corporation55 %30 %51 %McKesson Corporation28 %18 %32 %U.S. government*43 %** Sales to the U.S. government represented less than 10% of total gross product revenue during the period

Three Months Ended September 30,Nine Months Ended September 30,2021202020212020Besse Medical, a subsidiary of AmerisourceBergen Corporation40 %50 %33 %52 %McKesson Corporation24 %34 %20 %34 %U.S. Government (see Note 3)25 %*38 %** Sales to the U.S. Government represented less than 10% of total gross product revenue during the period.

Three Months Ended June 30,Six Months Ended June 30,2021202020212020Besse Medical, a subsidiary of AmerisourceBergen Corporation22 %53 %30 %53 %McKesson Corporation14 %32 %19 %34 %U.S. Government (see Note 3)57 %— 43 %—

Three Months Ended March 31,20212020Besse Medical, a subsidiary of AmerisourceBergen Corporation46 %54 %McKesson Corporation29 %36 %U.S. Government (see Note 3)13 %—

Year Ended December 31,202120202019Besse Medical, a subsidiary of AmerisourceBergen Corporation30 %51 %57 %McKesson Corporation18 %32 %33 %U.S. government43 %*— * Sales to the U.S. government represented less than 10% of total gross product revenue during the period

Three Months Ended September 30,Nine Months Ended September 30,2020201920202019Besse Medical, a subsidiary of AmerisourceBergen Corporation50 %57 %52 %57 %McKesson Corporation34 %34 %34 %33 %

Three Months Ended June 30,Six Months Ended June 30,2020201920202019Besse Medical, a subsidiary of AmerisourceBergen Corporation53 %56 %53 %57 %McKesson Corporation32 %34 %34 %32 %

McKesson Corporation 36 % 31 %

Year Ended December 31,202020192018Besse Medical, a subsidiary of AmerisourceBergen Corporation51 %57 %56 %McKesson Corporation32 %33 %36 %

McKesson Corporation 34 % 36 % 33 % 37 %

McKesson Corporation 34 % 35 % 32 % 37 %

McKesson Corporation 31 % 40 %

McKesson Corporation 33 % 36 % 29 %

McKesson Corporation 36 % 29 % 37 % 29 %

McKesson Corporation 35 % 29 % 37 % 28 %

McKesson Corporation 36 % 29 % 28 %

McKesson — — 23 %

Sales to Western Wellness Solutions LLC, McKesson Corporation, Cardinal Health, Inc., and AmerisourceBergen accounted for 42.1%, 21.2%, 18.3% and 17.0% of total gross sales, respectively, for the year ended December 31, 2021.

In the year ended December 31, 2024, sales to McKesson Corporation and Medline Industries accounted for approximately 18% and 17% of consolidated net sales, respectively.

In the year ended December 31, 2023, sales to Medline Industries, McKesson Corporation, and Owens & Minor, Inc. accounted for approximately 15%, 13%, and 6% of consolidated net sales, respectively.

For the year ended December 31, 2025, sales to the Company’s three largest product distributors, ASD Specialty Healthcare (Cencora), McKesson and Shanghai Pharmaceutical represented approximately 18.5%, 17.5% and 10.1% of product revenue, respectively, and collectively, represented approximately 37.1% of trade accounts receivable as of December 31, 2025.

For the year ended December 31, 2024, sales to the Company’s three largest product distributors, ASD Specialty Healthcare (Cencora), McKesson and Shanghai Pharmaceutical represented approximately 18.0%, 16.9% and 11.1% of product revenue, respectively, and collectively, represented approximately 51.0% of trade accounts receivable as of December 31, 2024.

For the year ended December 31, 2023, sales to the Company’s four largest product distributors, ASD Specialty Healthcare, McKesson, Sinopharm, and Shanghai Pharmaceutical, represented approximately 16.0%, 14.2%, 12.4% and 11.4% of product revenue, respectively, and collectively, represented approximately 53.2% of trade accounts receivable as of December 31, 2023.

McKesson Corporation 16 % 14 % 36 % 46 % 28 % 41 %

McKesson Corporation 14 % 36 % 36 % 28 % 41 % 39 %

The following table summarizes the percentage of total product revenues for PEDMARK® in the United States and abroad by Customers who individually accounted for 10% or more of total product revenues earned in the three and nine months ended September 30, 2023, and 2022, respectively: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, Specialty Distributors 2023 2022 2023 2022ASD 16% —% 24% —McKesson 19 — 16 —Subtotal-Specialty Distributors 35 — 40 —Direct Customers 65 — 60 — 100% —% 100% — The activities and ending allowance balances for each significant category of discounts and allowances for PEDMARK® (which constitute variable consideration) for the nine months ended September 30, 2023, was as follows: Chargebacks, Rebates, Customer Discounts for Fees/Credits Prompt pay and and Co-Pay In thousands Other allowances Assistance TotalsBalance at December 31, 2022 $ 71 $ 163 $ 234Provision related to sales made in: Current period 116 117 233Prior periods — — —Payments and customer credits issued (31) (66) (97)Balance at March 31, 2023 $ 156 $ 214 $ 370Provision related to sales made in: 246 148 394Current period — — —Prior periods — — —Payments and customer credits issued (193) (124) (317)Balance at June 30, 2023 $ 209 $ 238 $ 447Provision related to sales made in: Current period 334 180 514Prior periods — — —Payments and customer credits issued (307) (71) (378)Balance at September 30, 2023 $ 236 $ 347 $ 583 The allowances for chargebacks, fees due to Customers, rebates and discounts for prompt payment are recorded as a contra-asset to accounts receivable, while Medicaid rebates and return allowances are in accrued liabilities in the accompanying Condensed Consolidated Balance Sheets.Trade ReceivablesThe Company records gross trade receivables at the time of product sale to its Customers.

The Company sells its product through the following specialty distributors: Amerisource Specialty Distribution (“ASD”), McKesson Plasma and Biologics, McKesson Specialty, and Cardinal Health Specialty (collectively the “Customers” and each a “Customer”).

The Company sells its product principally through the following specialty distributors: Amerisource Specialty Distribution (“ASD”), McKesson Plasma and Biologics, McKesson Specialty and Cardinal Health Specialty (collectively the “Customers” and each a “Customer”).

McKesson Corporation 14.4 % 20.7 % 15.0 % 19.1 %

McKesson Corporation 15.7 % 16.9 %

McKesson Corporation 17.9 % 14.1 % 15.7 %

McKesson Corporation 20.7 % 13.0 % 19.7 % 13.9 %

McKesson Corporation 20.7 % 14.0 % 19.1 % 14.7 %

McKesson Corporation 16.9 % 16.0 %

McKesson Corporation 13.2 % 18.4 % 13.2 % 19.0 %

McKesson Corporation 13.0 % 18.4 % 13.2 % 19.4 %

McKesson Corporation 13.5 % 20.8 %

McKesson Corporation 14.1 % 15.7 % 8.9 %

McKesson Corporation 18.4 % 20.2 % 19.0 % 20.9 %

McKesson Corporation 18.4 % 24.6 % 19.4 % 22.5 %

Sales to Cardinal Health, AmerisourceBergen Drug Corporation, and McKesson Corporation made up 22.2%, 21.6%, and 20.8%, respectively, of our product sales, net during the three months ended March 31, 2023.

In addition, we derived a significant portion of our product sales revenue from wholesale distributors including McKesson, AmerisourceBergen and Cardinal Health, which each accounted for approximately 13%, 12% and 11% of total revenues in the year ended December 31, 2021, respectively.

Significant customers from which we derive 10% or more of our total revenue in each or any of the years in the three-year period ended December 31, 2021 include: Teva, McKesson, AmerisourceBergen Corporation, Cardinal Health and Covis.

McKesson Corp. 12.1 % 12.0 % 10.3 % 10.4 % 9.6 %

McKesson Corp. 12.0 % 10.3 % 8.5 % 9.6 % 9.1 %

McKesson 11 % 10 % 11 % 11 %

McKesson 12 % 11 %

McKesson 10 % 12 % 11 %

McKesson 11 % 13 % 11 % 12 %

As of December 31, 2024, five customers accounted for 80% of gross accounts receivable, including ESSDS, which accounted for 39% of gross accounts receivable, ASD, which accounted for 15% of gross accounts receivable and McKesson, which accounted for 13% of gross accounts receivable.

McKesson 10 % 12 % 11 % 12 %

McKesson 11 % 12 %

As of December 31, 2025, five customers accounted for 81% of gross accounts receivable, including ESSDS, which accounted for 41% of gross accounts receivable, ASD, which accounted for 16% of gross accounts receivable and McKesson, which accounted for 11% of gross accounts receivable.

McKesson 13 % 12 % 12 % 11 %

McKesson 12 % 12 % 12 % 12 %

As of March 31, 2024, five customers accounted for 78% of gross accounts receivable, including Express Scripts Specialty Distribution Services, Inc. and its affiliates, or ESSDS, which accounted for 41% of gross accounts receivable, McKesson Corporation and affiliates, or McKesson, which accounted for 12% of gross accounts receivable and ASD Specialty Healthcare LLC, or ASD, which accounted for 12% of gross accounts receivable.

As of December 31, 2023, five customers accounted for 79% of gross accounts receivable, including ESSDS, which accounted for 41% of gross accounts receivable, ASD, which accounted for 13% of gross accounts receivable and McKesson, which accounted for 11% of gross accounts receivable.

As of December 31, 2022, five customers accounted for 87% of gross accounts receivable, including ESSDS, which accounted for 55% of gross accounts receivable, Cardinal Health Inc, which accounted for 10% of gross accounts receivable and McKesson, which accounted for 9% of gross accounts receivable.

McKesson 12 % 12 % 12 % 12 %

As of March 31, 2023, three customers accounted for 73% of gross accounts receivable, Express Scripts Specialty Distribution Services, Inc. and its affiliates, or ESSDS, which accounted for 51% of gross accounts receivable, McKesson Corporation and affiliates, or McKesson, which accounted for 12% of gross accounts receivable and Cardinal Health, Inc., or Cardinal, which accounted for 10% of gross accounts receivable.

McKesson 11 % 11 % 12 %

As of September 30, 2022, three customers accounted for 75% of gross accounts receivable, Express Scripts Specialty Distribution Services, Inc. and its affiliates, or ESSDS, which accounted for 55% of gross accounts receivable, Cardinal Health, Inc., or Cardinal, which accounted for 11% of gross accounts receivable, and McKesson Corporation and affiliates, or McKesson, which accounted for 9% of gross accounts receivable.

McKesson 12 % 13 % 12 % 13 %

McKesson 12 % 14 %

As of December 31, 2021, three customers accounted for 74% of gross accounts receivable, ESSDS, which accounted for 52% of gross accounts receivable, McKesson, which accounted for 12% of gross accounts receivable and Cardinal which accounted for 10% of gross accounts receivable.

McKesson 11 % 10 % 12 % 11 %

As of June 30, 2021, three customers accounted for 74% of gross accounts receivable, Express Scripts Specialty Distribution Services, Inc. and its affiliates, or ESSDS, which accounted for 56% of gross accounts receivable, McKesson Corporation and affiliates, or McKesson, which accounted for 10% of gross accounts receivable, and Cardinal Health, Inc., or Cardinal, which accounted for 8% of gross accounts receivable.

McKesson 14 % 13 %

McKesson 12 % 12 % 14 %

As of December 31, 2019, two customers accounted for 89% of gross accounts receivable, ESSDS, which accounted for 77% of gross accounts receivable, and McKesson, which accounted for 12% of gross accounts receivable.

As of December 31, 2019, two customers accounted for 89% of gross accounts receivable, ESSDS, which accounted for 77% of gross accounts receivable, and McKesson, which accounted for 12% of gross accounts receivable.

McKesson 13 % 18 %

McKesson 12 % 14 % 17 %

As of December 31, 2018, two customers accounted for 89% of gross accounts receivable, Express Scripts, which accounted for 74% of gross accounts receivable, and McKesson, which accounted for 15% of gross accounts receivable.

McKesson 12 % 20 % 15 % 20 %

McKesson 18 % 20 %

McKesson 14 % 17 % 16 %

McKesson 15 % 14 % 18 % 14 %

McKesson 20 % 14 % 20 % 15 %

McKesson 20 % 17 %

McKesson 17 % 16 % 15 %

McKesson 14 % 13 % 14 % 14 %

McKesson 14 % 15 % 15 % 14 %

McKesson Corporation and affiliates 17 % 13 %

McKesson 16 % 15 % 7 %

McKesson Corporation and affiliates 13 % 14 % 14 % 5 %

McKesson Corporation * * 10 %

McKesson Corporation * 10 % 11 %

McKesson Corporation 10 % 11 % 9 %

McKesson Corporation 11 % 9 % 13 %

Our four largest customers, Cencora, Inc., McKesson Drug Co., Cardinal Health, Inc. and CVS Health Corporation, accounted for approximately 71%, 70% and 70% of total net sales of products for the years ended December 31, 2025, 2024 and 2023, respectively.

For example, for the fiscal year ended September 30, 2025, gross sales to Cencora, McKesson Corporation, and Cardinal Health, Embecta’s three largest distributors, together represented approximately 42% of Embecta’s worldwide gross sales.

As of September 30, 2020 and December 31, 2019, 47% and 38%, respectively, of our trade receivables were from our collaboration partner Ipsen Pharma SAS (Ipsen), and 12% and 14% were from affiliates of McKesson Corporation.

McKesson Corporation 19 % 21 %

McKesson Corporation 19 % 31 %

McKesson Corporation 23 % 31 %

McKesson Corporation 21 % 23 %

McKesson Corporation 31 % 23 %

McKesson Corporation 23 % 30 %

The Company’s customers with the largest accounts receivable balances are: McKesson Corporation, Cencora, Inc. and Cardinal Health, Inc., which represented approximately 22%, 21% and 13%, respectively, of total accounts receivable at December 31, 2025.

The Company’s customers with the largest accounts receivable balances are: McKesson Corporation, Cencora, Inc. and Cardinal Health, Inc., which represented approximately 21%, 21% and 13%, respectively, of total accounts receivable at December 31, 2024.

The Company’s customers with the largest accounts receivable balances are: McKesson Corporation, Cencora, Inc. and Cardinal Health, Inc., which represented approximately 21%, 20% and 14%, respectively, of total accounts receivable at December 31, 2023.

The Company’s customers with the largest accounts receivable balances are: McKesson Corporation, AmerisourceBergen Corporation and Cardinal Health, Inc., which represented approximately 21%, 20% and 13%, respectively, of total accounts receivable at December 31, 2022.

The Company’s customers with the largest accounts receivable balances are: McKesson Corporation, AmerisourceBergen Corporation and Cardinal Health, Inc., which represented approximately 20%, 15% and 10%, respectively, of total accounts receivable at December 31, 2021.

McKesson Plasma and Biologics * * * * 14 %

Each of our three major customers, Cencora, Inc., Cardinal Health, Inc., and McKesson Corporation, individually accounted for more than 15% of our total product revenue in 2025 and collectively accounted for more than 76% of our total product revenue in 2025.

Each of our three major customers, Cencora, Inc., Cardinal Health, Inc. and McKesson Corporation, individually accounted for more than 20% of our total gross product sales and collectively accounted for more than 70% of our total gross product sales for the three months ended March 31, 2024 and 2023.

Each of our three major customers, AmerisourceBergen Drug Corporation, Cardinal Health, Inc. and McKesson Corporation, individually accounted for more than 20% of our total net product sales and collectively accounted for more than 75% of our total net product sales in 2023 and 2022.

Each of our three major customers, AmerisourceBergen Drug Corporation, Cardinal Health, Inc. and McKesson Corporation, individually accounted for more than 20% and 25% of our total net product sales and collectively accounted for more than 75% and 85% of our total net product sales in 2022 and 2021, respectively.

McKesson 13 % — %

McKesson Corporation 22 % 26 % 26 % 19 % 17 %

McKesson Corporation 26 % 26 % 25 % 17 % 23 %

McKesson Corporation 26 % 25 % 22 % 23 % 22 %

McKesson Corporation 25 % 22 % 20 % 22 % 21 %

McKesson Corporation 20 % 17 % 14 % 14 % 22 %

McKesson Corporation 17 % 14 % < 10 % 22 % 16 %

McKesson Corporation 14 % <10 % <10 % 16 % <10 %

EXPRESS REPORT: PHARMACEUTICAL PRIME VENDOR (PPV)FY2026 NOVEMBER

4559232652!PV PHARM BRANCH, VENDOR, CAGE 0U9U0

MCKESSON: NON-CONTROLLED MEDICATION DOS: OCTOBER 1, 2025 THRU DECEMBER 31, 2025.

CENTRALIZED VACCINE DISTRIBUTION

THE PURPOSE OF THIS CONTRACT IS TO PROVIDE ICE HEALTH SERVICE CORPS WITH PHARMACEUTICAL PRODUCTS.

NORTHERN CALIFORNIA AREA OFFICE MODULAR INDOOR SHOOTING RANGE (MISR). SUPPLY, TRANSPORT, INSTALL MISR. PROVIDE ONE, TWO-HOUR TRAINING SESSION. OPTION TO PURCHASE SECOND MISR WITH SAME SALIENT CHARACTERISTICS.

INV: 7563097176 7563097174 7563097172 PR-518-000855 ECUADOR MCKESSON CONNECT FOR PHARMACEUTICALS