INVENTORIES

9 Months Ended

Sep. 30, 2021

INVENTORIES

INVENTORIES

7. INVENTORIES

Inventories consist of the following as of:

	September 30,		December 31,
(in thousands)	2021		2020
Raw materials	$	33,995	$	41,591
Packaging materials		3,631		3,194
Work-in-progress		814		886
Finished goods		28,460		20,363
		66,900		66,034
Reserve for excess/obsolete inventories		(5,216)		(5,231)
Inventories, net	$	61,684	$	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 nine months ended September 30, 2021, no single vendor represented at least 10% of inventory purchases. During the three months ended September 30, 2020, we purchased approximately 14% of our inventory from one supplier. During the nine months ended September 30, 2020, we purchased approximately 12% of our inventory from one supplier. purchases.