INVENTORIES

3 Months Ended

Mar. 31, 2021

INVENTORIES

INVENTORIES

7. INVENTORIES

Inventories consist of the following as of:

	March 31,		December 31,
(in thousands)	2021		2020
Raw materials	$	39,746	$	41,591
Packaging materials		3,066		3,194
Work-in-progress		782		886
Finished goods		21,791		20,363
		65,385		66,034
Reserve for excess/obsolete inventories		(5,458)		(5,231)
Inventories, net	$	59,927	$	60,803

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 March 31, 2021, we purchased approximately 11% of our inventory from one supplier. As of March 31, 2021, our accounts payable to this supplier was immaterial. During the three months ended March 31, 2020, we purchased approximately 13% of our inventory from one supplier.