Inventory

6 Months Ended

Jun. 30, 2020

Inventory Disclosure [Abstract]

Inventory

Inventory

The following table presents our inventory as of June 30, 2020 (in thousands):

	June 30, 2020
Raw materials	$	516
Work in process	20,291
Finished goods	—
Total inventory	$	20,807

Inventory is stated at the lower of cost or net realizable value and consists of raw materials, work-in-process and finished goods. Cost is determined using a standard cost method, which approximates actual cost, and assumes a FIFO flow of goods. At June 30, 2020, all of our inventory was related to Trodelvy, which was approved by the FDA on April 22, 2020, at which time we began to capitalize costs to manufacture Trodelvy. The Company has not recorded any inventory write downs since that time. Prior to FDA approval of Trodelvy, all costs related to the manufacturing of Trodelvy and related material were charged to research and development expense in the period incurred, therefore, inventory is not included in December 31, 2019 condensed consolidated balance sheets. Inventory that is used for clinical development purposes is expensed to research and development expense when consumed. At June 30, 2020, we have determined a reserve related to Trodelvy inventory is not required. We currently use a limited number of third-party contract manufacturing organizations (CMOs) to produce our inventory.