7. INVENTORY

Inventories are stated at the lower of cost and net realizable value with cost determined on a first-in, first-out basis. The Company capitalizes inventory costs associated with products following regulatory approval when future commercialization is considered probable and the future economic benefit is expected to be realized. EXONDYS 51 which may be used in clinical development programs are included in inventory and charged to research and development expense when the product enters the research and development process and no longer can be used for commercial purposes. The following table summarizes the components of the Company’s inventory for the period indicated:

	As of June 30, 2017		As of December 31, 2016
	(in thousands)
Raw materials	$	27,814	$	9,531
Work in progress		13,780		3,175
Finished goods		160		107
Total inventory	$	41,754	$	12,813