INVENTORIES

3 Months Ended

Mar. 31, 2022

INVENTORIES

INVENTORIES

7. INVENTORIES

Inventories consist of the following as of:

	March 31,		December 31,
(in thousands)	2022		2021
Raw materials	$	52,816	$	51,350
Packaging materials		5,560		5,475
Work-in-progress		615		652
Finished goods		31,363		31,969
		90,354		89,446
Reserve for excess/obsolete inventories		(7,199)		(7,753)
Inventories, net	$	83,155	$	81,693

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, 2022, one vendor represented 16% of inventory purchases. As of March 31, 2022, our accounts payable to this supplier was zero. During the three months ended March 31, 2021, we purchased approximately 11% of our inventory from one supplier.