NOTE 5 — INVENTORIES

Inventories consist of finished goods held for sale and distribution, raw materials and work-in-process. Included in inventory at June 30, 2011 and December 31, 2010 is approximately $5.6 million and $4.6 million, respectively, of inventory that is pending approval by the U.S. Food and Drug Administration (“FDA”), by other regulatory agencies or has not been launched due to contractual restrictions. This inventory consists primarily of generic pharmaceutical products that are capitalized only when the bioequivalence of the product is demonstrated or the product is already FDA approved and is awaiting a contractual triggering event to enter the marketplace.

Inventories are stated at the lower of cost (first-in, first-out method) or market (net realizable value) and consisted of the following (in millions):


	June 30,		December 31,
	2011		2010
Inventories:
Raw materials	$	171.6	$	178.4
Work-in-process		47.0		38.4
Finished goods		456.5		465.6

	$	675.1	$	682.4
Less: Inventory reserves		47.3		51.4

	$	627.8	$	631.0