Inventories

12 Months Ended

Dec. 31, 2022

Inventory Disclosure [Abstract]

Inventories

NOTE 5 – INVENTORIES

The components of inventories as of December 31, 2022 and 2021 consisted of the following (in thousands):

	As of December 31,
	2022		2021
Raw materials	$	44,230	$	43,366
Work-in-process		25,232		101,719
Finished goods		100,097		80,645
Inventories, net	$	169,559	$	225,730

During the year ended December 31, 2021, as part of the Viela acquisition, a step-up in the value of inventory of $151.6 million was recorded, which was composed of $10.1 million for raw materials, $120.9 million for work-in-process and $20.6 million for finished goods. Refer to Note 4 for further details. Inventory step-up expense recorded in cost of goods sold relating to UPLIZNA was $91.7 million and $27.6 million for the years ended December 31, 2022 and 2021, respectively.

Because inventory step-up expense is related to an acquisition, will not continue indefinitely and has a significant effect on the Company’s gross profit, gross margin percentage and net income for all affected periods, the Company discloses balance sheet and income statement amounts related to inventory step-up within the Notes to Consolidated Financial Statements.