5. Inventories

Inventories are stated at the lower of cost or market and consisted of the following:



	September 30, 2016		December 31, 2015
Raw materials	$	88	$	120
Work-in-process		5,270		441
Finished goods		217		745
	$	5,575	$	1,306

Work-in-process inventories at September 30, 2016, included $4,774 of pre-launch product costs of GALLIPRANT® (grapiprant tablets), ENTYCE® (capromorelin oral solution) and NOCITA® (bupivacaine liposome injectable suspension) capitalized due to anticipated benefit from future commercialization of these products. GALLIPRANT was approved by the CVM for the control of pain and inflammation associated with osteoarthritis in dogs in the first quarter of 2016, ENTYCE was approved by the CVM for appetite stimulation in dogs in the second quarter of 2016, and NOCITA was approved by the CVM as a local post-operative analgesia for cranial cruciate ligament surgery in dogs in the third quarter of 2016 and was made commercially available to veterinarians in the United States in October 2016. As of September 30, 2016, the Company had non-cancellable open orders for the purchase of inventories of approximately $21,800.

During the three and nine months ended September 30, 2016, the Company recognized inventory valuation adjustment losses in the amount of $111 and $1,664, respectively, from application of lower of cost or market, in cost of product sales. The losses related to TACTRESS™ inventories that were written off and pre-launch GALLIPRANT inventories marked to market due to terms agreed upon in the Elanco collaboration agreement (Note 10).