6. INVENTORIES

Inventories consist of the following (in thousands):


	Balance as of
	September 30,		December 31,
	2019		2018
Raw materials	$	22,648	$	17,813
Work-in-process		3,100		1,719
Finished goods		4,260		3,600
Inventories, net	$	30,008	$	23,132

Raw materials inventories consist primarily of the active pharmaceutical ingredients (“API”) for Qsymia and STENDRA/SPEDRA. Work-in-process and finished goods inventory consist of Qsymia, STENDRA/SPEDRA and PANCREAZE inventory. Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first in, first out method for all inventories, which are valued using a weighted-average cost method calculated for each production batch. The Company periodically evaluates the carrying value of inventory on hand for potential excess amounts over demand using the same lower of cost or net realizable value approach as that used to value the inventory.