INVENTORIES

9 Months Ended

Sep. 30, 2022

INVENTORIES

INVENTORIES

8. INVENTORIES

Inventories consist of the following as of:

	September 30,		December 31,
(in thousands)	2022		2021
Raw materials	$	62,423	$	51,350
Packaging materials		7,871		5,475
Work-in-progress		1,097		652
Finished goods		33,936		31,969
		105,327		89,446
Reserve for excess/obsolete inventories		(9,434)		(7,753)
Inventories, net	$	95,893	$	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 September 30, 2022, no single vendor represented more than 10% of inventory purchases. During the nine months ended September 30, 2022, we purchased approximately 13% of our inventory from one supplier. As of September 30, 2022, there was no amount payable to this supplier. During the three and nine months ended September 30, 2021, no single vendor represented more than 10% of inventory purchases.