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INVENTORIES
9 Months Ended
Sep. 30, 2016
Inventory Disclosure [Abstract]  
INVENTORIES
5.
INVENTORIES
 
Inventories consist of the following as of: 
 
(in thousands)
 
September 30,
2016
 
December 31,
2015
 
Raw materials
 
$
14,538
 
$
10,192
 
Packaging materials
 
 
1,118
 
 
998
 
Work-in-progress
 
 
685
 
 
456
 
Finished goods
 
 
12,083
 
 
1,897
 
 
 
 
28,424
 
 
13,543
 
Reserve for excess/obsolete inventories
 
 
(163)
 
 
(156)
 
Inventories, net
 
$
28,261
 
$
13,387
 
 
Vendor Concentration
 
We source the raw materials for our products, including active pharmaceutical ingredients (“API”), from both domestic and international suppliers. Generally, only a single source of API is qualified for use in each product due to the cost and time required to validate a second source of supply. As a result, we are dependent upon our current vendors to reliably supply the API required for ongoing product manufacturing. During the three months ended September 30, 2016, we purchased approximately 28% of our inventory from one supplier. During the nine months ended September 30, 2016, we purchased approximately 23% of our inventory, exclusive of inventory acquired in an asset purchase, from the same supplier. As of September 30, 2016, the amount payable to this supplier was immaterial. During the three months ended September 30, 2015, we purchased approximately 35% of our inventory from two suppliers. During the nine months ended September 30, 2015, we purchase approximately 44% of our inventory from three suppliers.