Inventory

6 Months Ended

Jun. 30, 2022

Inventory

Inventory

4.           Inventory

Inventory consisted of the following:

	June 30,		December 31,
(in thousands)	2022		2021
Raw materials	$	7,685	$	4,870
Work in process		69,593		65,117
Finished goods		30,420		23,265
Total	$	107,698	$	93,252

The Company began capitalizing YUSIMRY inventory in the second quarter of 2022 and had $1.9 million of such inventory recognized on the balance sheet at June 30, 2022. Inventory expected to be sold more than twelve months from the balance sheet date is classified as inventory, non-current on the condensed consolidated balance sheets. As of June 30, 2022 and December 31, 2021, the non-current portion of inventory consisted of raw materials, work in process and a portion of finished goods. The following tables presents the inventory balance sheet classifications:

	June 30,		December 31,
(in thousands)	2022		2021
Inventory	$	31,744	$	37,642
Inventory, non-current		75,954		55,610
Total	$	107,698	$	93,252

Prepaid manufacturing of $7.2 million as of June 30, 2022 includes prepayments of $3.5 million to a contract manufacturing organization (“CMO”) for manufacturing services for UDENYCA, which the Company expects to be converted into inventory within the next twelve months; and prepayments of $3.7 million to various CMOs for research and development pipeline programs. Prepaid manufacturing of $13.7 million as of December 31, 2021 included prepayments of $8.3 million to a CMO for manufacturing services for UDENYCA; and prepayments of $5.4 million to various CMOs for research and development pipeline programs.

In February 2021, the Company announced the discontinuation of the development of CHS-2020, a biosimilar of Eylea® as part of a realignment of research and development resources toward other development programs. As a result, during the quarter ended March 31, 2021, the Company recognized $11.5 million within research and development expenses on its condensed consolidated statement of operations, which included an impairment charge of $3.2 million for the write-off of prepaid manufacturing services no longer deemed to have future benefits. No expense relating to the discontinuation of CHS-2020 was recognized in the second quarter of 2021.