Inventories

3 Months Ended

Mar. 31, 2023

Inventory Disclosure [Abstract]

Inventories

5. Inventories

Inventories consist of the following (in thousands):

	March 31, 2023		December 31, 2022
Raw materials	$	5,579	$	5,739
Work-in-process		8,050		13,815
Finished goods		8,369		2,218
Total inventory	$	21,998	$	21,772

Work-in-process and finished goods as of March 31, 2023 and December 31, 2022 include conversion costs and exclude the cost of insulin. All insulin inventory on hand was written off and the projected loss on the purchase commitment contract to purchase future insulin was accrued as of the end of 2016. Raw materials inventory included $0.8 million of pre-launch inventory as of March 31, 2023 and December 31, 2022, which consisted of FDKP received in November 2019. The Company expects to request approval from the FDA for the new source of FDKP in 2024.

The Company analyzed its inventory levels to identify inventory that may expire or has a cost basis in excess of its estimated realizable value. The Company also performed an assessment of projected sales and evaluated the lower of cost or net realizable value and the potential excess inventory on hand as of March 31, 2023 and December 31, 2022. Inventory that was forecasted to become obsolete due to expiration as well as inventory that does not meet acceptable standards is recorded in costs of goods sold in the condensed consolidated statements of operations. There was an inventory write-off of $2.4 million for the three months ended March 31, 2023, which was primarily recognized as cost of revenue from collaborations in our condensed consolidated statements of operations. There were no inventory write-offs for the three months ended March 31, 2022.