5.	INVENTORIES

Inventories consist of the following as of:

	March 31,		December 31,
(in thousands)	2016		2015
Raw materials	$	10,648	$	10,192
Packaging materials		784		998
Work-in-progress		503		456
Finished goods		2,232		1,897
		14,167		13,543
Reserve for excess/obsolete inventories		(245)		(156)
Inventories, net	$	13,922	$	13,387

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 ongoing product manufacturing. During the three months ended March 31, 2016, we purchased approximately 50% of our inventory from three suppliers. As of March 31, 2016, amounts payable to these three suppliers totaled $0.1 million. During the three months ended March 31, 2015, we purchased approximately 62% of our inventory from four suppliers.