Note 7 - Inventories:

($ amounts in thousands)


	March 31,		December 31,
	2012		2011
Raw materials and supplies	$	40,172	$	39,331
Work-in-process		8,530		5,330
Finished goods		44,094		61,589
	$	92,796	$	106,250

Inventory write-offs (inclusive of pre-launch inventories detailed below)

($ amounts in thousands)


	Three months ended
	March 31,		March 31,
	2012		2011
Inventory write-offs	$	2,619	$	506

Par capitalizes inventory costs associated with certain products prior to regulatory approval and product launch, based on management's judgment of reasonably certain future commercial use and net realizable value, when it is reasonably certain that the pre-launch inventories will be saleable. The determination to capitalize is made once Par (or its third party development partners) has filed an Abbreviated New Drug Application ("ANDA") that has been acknowledged by the FDA as containing sufficient information to allow the FDA to conduct its review in an efficient and timely manner and management is reasonably certain that all regulatory and legal hurdles will be cleared. This determination is based on the particular facts and circumstances relating to the expected FDA approval of the generic drug product being considered, and accordingly, the time frame within which the determination is made varies from product to product. Par could be required to write down previously capitalized costs related to pre-launch inventories upon a change in such judgment, or due to a denial or delay of approval by regulatory bodies, or a delay in commercialization, or other potential factors. Pre-launch inventories at March 31, 2012 were comprised of generic products in development. There was no Strativa-related pre-launch inventory at March 31, 2012.

The amounts in the table below represent inventories related to products that were not yet available to be sold and are also included in the total inventory balances presented above.

Pre-Launch Inventories

($ amounts in thousands)


	March 31,		December 31,
	2012		2011
Raw materials and supplies	$	9,004	$	7,774
Work-in-process		1,031		346
Finished goods		1,257		631
	$	11,292	$	8,751

Write-offs of pre-launch inventories

($ amounts in thousands)


	Three months ended
	March 31,		March 31,
	2012		2011
Pre-launch inventory write-offs, net of partner allocation	$	960	$	-