6. INVENTORIES

Inventories consist of the following (in thousands):


	Balance as of
	June 30,		December 31,
	2018		2017
Raw materials	$	16,801	$	13,663
Work-in-process		761		2,264
Finished goods		4,697		1,785
Inventories	$	22,259	$	17,712

Raw materials inventories consist primarily of the active pharmaceutical ingredients, or API, for Qsymia and STENDRA/SPEDRA. Work-in-process and finished goods inventory consist of Qsymia and STENDRA/SPEDRA and, at June 30, 2018, also included PANCREAZE inventory. Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first in, first out method for all inventories, which are valued using a weighted-average cost method calculated for each production batch. The Company periodically evaluates the carrying value of inventory on hand for potential excess amounts over demand using the same lower of cost or net realizable value approach as that used to value the inventory.