INVENTORIES AND PREPAID MANUFACTURING

3 Months Ended

Mar. 31, 2024

Inventories consists of the following (in thousands):


	March 31, 2024		December 31, 2023
Inventories, current:
Work-in-process	$	14,133	$	4,297
Finished goods	11,399		11,394
Inventories, current	$	25,532	$	15,691
Long-term inventories included in other long-term assets:
Raw materials	586		1,143
Work-in-process	7,568		8,260
Inventories, long-term	8,154		9,403
Total inventories	$	33,686	$	25,094

As of March 31, 2024 and December 31, 2023, inventory consisted primarily of inventory related to the Company's commercial product, Auryxia. As of March 31, 2024 and December 31, 2023, the Company had no prepaid manufacturing costs and $0.5 million of prepaid manufacturing costs for Auryxia drug substance, respectively.

Inventory written down for Auryxia as a result of excess, obsolescence, scrap or other reasons charged to cost of product and other revenue in the unaudited condensed consolidated statement of operations and comprehensive loss totaled approximately $0.6 million and $0.3 million during the three months ended March 31, 2024 and 2023, respectively. For the three months ended March 31, 2024, the Company realized lower cost of product and other revenue of $3.7 million due to the Company's ability to commercially sell inventory previously written down to zero, its then net realizable value.

Pre-Launch Inventory

The Company records advance payments for Vafseo active pharmaceutical ingredient, or API, or drug substance (raw materials) it expects to use for the U.S. launch and Medice Territory as prepaid manufacturing costs. Upon the quality release of the Vafseo batches and transfer of title to the Company from the contract manufacturing organization, or CMO, the cost of the pre-launch inventory prior to regulatory approval, including the manufacturing costs, was expensed to R&D. As of March 31, 2024 and December 31, 2023, the Company had $14.0 million of prepaid manufacturing costs for Vafseo drug substance expected to be used in the U.S. launch of Vafseo included in prepaid expenses and other current assets on the consolidated balance sheets. See Note 6, Additional Balance Sheet Detail, for further information.