5.	INVENTORIES

Inventories consist of the following as of:

(in thousands)	September 30, 2017		December 31, 2016
Raw materials	$	17,807	$	14,138
Packaging materials		1,362		930
Work-in-progress		915		477
Finished goods⁽¹⁾		18,865		10,812
		38,949		26,357
Reserve for excess/obsolete inventories		(471)		(174)
Inventories, net	$	38,478	$	26,183

⁽¹⁾Includes finished goods acquired in asset purchases (Note 12).

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 September 30, 2017, we purchased approximately 40% of our inventory from two suppliers. As of September 30, 2017, the amounts payable to these suppliers was $1.8 million. During the nine months ended September 30, 2017, we purchased approximately 24% of our inventory (exclusive of inventory acquired in asset purchases (Note 12)) from two suppliers. As of September 30, 2017, the amounts payable to these suppliers was $0.8 million. During the three months ended September 30, 2016, we purchased approximately 28% of our inventory from one supplier. During the nine months ended September 30, 2016, we purchased approximately 23% of our inventory, exclusive of inventory acquired in an asset purchase, from one supplier.