INVENTORIES

9 Months Ended

Sep. 30, 2020

INVENTORIES

INVENTORIES

6.    INVENTORIES

Inventories consist of the following as of:

	September 30,		December 31,
(in thousands)	2020		2019
Raw materials	$	43,010	$	34,881
Packaging materials		3,144		2,902
Work-in-progress		1,086		361
Finished goods		18,110		16,750
		65,350		54,894
Reserve for excess/obsolete inventories		(6,155)		(6,731)
Inventories, net	$	59,195	$	48,163

Vendor Concentration

We source the raw materials for our products, including active pharmaceutical ingredients (“API”), from both domestic and international suppliers. Generally, only a single source of API is qualified for use in each product due to the cost and time required to validate a second source of supply. As a result, we are dependent upon our current vendors to reliably supply the API required for on-going product manufacturing. During the three months ended September 30, 2020, we purchased approximately 14% of our inventory from one supplier. As of September 30, 2020, our accounts payable to this supplier was $1.6 million. During the three months ended September 30, 2019, we purchased approximately 10% of our inventory from one supplier. During the nine months ended September 30, 2020, we purchased approximately 12% of our inventory from one supplier. During the nine months ended September 30, 2019, we purchased approximately 13% of our inventory from one supplier.