Inventories

12 Months Ended

Dec. 31, 2012

Inventories

Inventories

Note 3. Inventories

        Inventories consist of (in thousands):

	Balance as of
	December 31, 2012		December 31, 2011
Raw materials	$	5,139	$	3,107
Work in process		2,635		—
Finished goods		17,506		—
Deferred costs		73		—
Total	$	25,353	$	3,107

        As of December 31, 2012 and 2011, the raw materials inventories consist primarily of the API for the commercialization of Qsymia. As of December 31, 2012, the finished goods inventory consists of both Qsymia and STENDRA^TM (avanafil) for commercialization, while the work in process and deferred costs inventories relate exclusively to Qsymia. The deferred costs represent the costs of Qsymia product shipped to customers, but not yet shipped to patients through prescriptions, and for which recognition of revenue has been deferred.