INVENTORIES

Inventories consist of the following as of:

(in thousands)	March 31, 2015		December 31, 2014
Raw materials	$	7,974	$	5,056
Packaging materials		783		794
Work-in-progress		318		411
Finished goods		1,984		1,368
		11,059		7,629
Reserve for excess/obsolete inventories		(322)		(111)
Inventories, net	$	10,737	$	7,518

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 costs 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 ongoing product manufacturing. During the three months ended March 31, 2015, we purchased approximately 62% of our inventory from four suppliers. As of March 31, 2015, amounts payable to these suppliers was $0.2 million. During the three months ended March 31, 2014, we purchased approximately 49% of our inventory from two suppliers.