5. INVENTORY

In December 2009, the Company received marketing approval of KALBITOR from the FDA. Costs associated with the manufacture of KALBITOR prior to regulatory approval were expensed when incurred, and therefore were not capitalized as inventory. As a result, the Company’s finished goods inventory does not include all costs of manufacturing drug substance currently being sold. Subsequent to FDA approval, all costs associated with the manufacture of KALBITOR have been recorded as inventory. Inventory on-hand that will be sold beyond the Company's normal operating cycle is classified as non-current and grouped with other assets on the Company's balance sheet. As of September 30, 2012, approximately $6.4 million of inventory is classified as non-current.

Inventory consists of the following (in thousands):

	September 30, 2012		December 31, 2011
Raw Materials	$	1,116	$	1,429
Work in Progress		8,189		5,474
Finished Goods		887		119
Total	$	10,192	$	7,022

The Company has revised the classification for $4.9 million of inventory from current assets to non-current other assets for the year ended December 31, 2011, to correct the classification of inventory based on the projected sale of inventory beyond the Company's normal operating cycle. The Company concluded this error was not material to the prior period financial statements.