INVENTORIES

6 Months Ended

Jun. 30, 2018

Inventories consist of the following as of:

(in thousands)	June 30, 2018			December 31, 2017
Raw materials	$	25,766		$	22,139
Packaging materials		1,859			1,527
Work-in-progress		639			510
Finished goods		10,280			13,901	(1)
		38,544			38,077
Reserve for excess/obsolete inventories		(788	)		(350	)
Inventories, net	$	37,756		$	37,727

(1)

Includes finished goods acquired in asset purchases (Note 12).

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 June 30, 2018, we purchased approximately

% of our inventory from

three

suppliers. As of June 30, 2018, the amounts payable to these suppliers was immaterial. During the six months ended June 30, 2018, we purchased approximately

% of our inventory from one supplier. As of June 30, 2018, the amounts payable to this supplier was immaterial. During the three months ended June 30, 2017, we purchased approximately 27% of our inventory (exclusive of inventory acquired in asset purchases (Note 12)) from two suppliers. During the six months ended June 30, 2017, we purchased approximately 18% of our inventory (exclusive of inventory acquired in asset purchases (Note 12)) from one supplier.