Note 4—Inventories

At March 31, 2013 and December 31, 2012, inventories at cost, net of reserves, were as follows:


	March 31, 2013			December 31, 2012
	(In thousands)
Raw materials	$	2,949		$	2,949
Work in progress		6,816			7,331
Finished goods		1,601			1,282

Inventory at cost		11,366			11,562
Inventory reserves		(8,985	)		(7,237	)

Total	$	2,381		$	4,325

For the three-month period ended March 31, 2013 the Company recorded a $2.1 million inventory related charge against operations. The charge is substantially due to finished goods and raw material inventory that the Company does not believe will be able to sell through to commerce prior to expiration, as a result of lower sales demand forecasts for KRYSTEXXA in future years. The lower sales demand forecast includes a delay in the timing of a potential commercial launch of KRYSTEXXA in the EU, if at all. The Company did not record any inventory related charges during the three-month period ended March 31, 2012.