INVENTORIES

6 Months Ended

Jun. 30, 2021

INVENTORIES

INVENTORIES

7. INVENTORIES

Inventories consist of the following as of:

	June 30,		December 31,
(in thousands)	2021		2020
Raw materials	$	38,877	$	41,591
Packaging materials		3,347		3,194
Work-in-progress		631		886
Finished goods		30,267		20,363
		73,122		66,034
Reserve for excess/obsolete inventories		(5,488)		(5,231)
Inventories, net	$	67,634	$	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 and six months ended June 30, 2021, no single vendor represented at least 10% of inventory purchases. During the three months ended June 30, 2020, we purchased approximately 13% of our inventory from one supplier. During the six months ended June 30, 2020, no vendors represented at least 10% of inventory purchases.