7. INVENTORIES

Inventories consist of the following as of:


	June 30,		December 31,
(in thousands)	2019		2018
Raw materials	$	36,349	$	27,671
Packaging materials		2,488		2,563
Work-in-progress		881		1,210
Finished goods		7,789		10,620
		47,507		42,064
Reserve for excess/obsolete inventories		(2,211)		(1,561)
Inventories, net	$	45,296	$	40,503

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 June 30, 2019, no vendors represented at least 10% of inventory purchases. During the three months ended June 30, 2018, we purchased approximately 40% of our inventory from three suppliers. During the six months ended June 30, 2019, we purchased approximately 15% of our inventory from one supplier. As of June 30, 2019, the amounts payable to this supplier was immaterial. During the six months ended June 30, 2018, we purchased approximately 15% of our inventory from one supplier.