6. INVENTORIES

Inventories consist of the following (in thousands):


	Balance as of
	March 31,		December 31,
	2020		2019
Raw materials	$	28,509	$	26,313
Work-in-process		3,115		2,908
Finished goods		2,312		4,458
Inventories, net	$	33,936	$	33,679

Raw materials inventories consist primarily of the active pharmaceutical ingredients (“API”) for Qsymia and STENDRA/SPEDRA. Work-in-process and finished goods inventory consist of Qsymia, STENDRA/SPEDRA and 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.