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Inventories
6 Months Ended
Jun. 30, 2023
Inventory Disclosure [Abstract]  
Inventories

5. Inventories

Inventories consist of the following (in thousands):

 

 

June 30, 2023

 

 

December 31, 2022

 

Raw materials

 

$

5,859

 

 

$

5,739

 

Work-in-process

 

 

10,698

 

 

 

13,815

 

Finished goods

 

 

8,733

 

 

 

2,218

 

Total inventory

 

$

25,290

 

 

$

21,772

 

Work-in-process and finished goods as of June 30, 2023 and December 31, 2022 include conversion costs and exclude the cost of insulin. All insulin inventory on hand was written off and the projected loss on the purchase commitment contract to purchase future insulin was accrued as of the end of 2016. Raw materials inventory included $0.8 million of pre-launch inventory as of June 30, 2023 and December 31, 2022, which consisted of FDKP received in November 2019. The Company expects to request approval from the FDA for the new source of FDKP in 2024.

The Company analyzed its inventory levels to identify inventory that may expire or has a cost basis in excess of its estimated realizable value. The Company also performed an assessment of projected sales and evaluated the lower of cost or net realizable value and the potential excess inventory on hand as of June 30, 2023 and December 31, 2022. Inventory that was forecasted to become obsolete due to expiration as well as inventory that does not meet acceptable standards is recorded in costs of goods sold in the condensed consolidated statements of operations. As a result of this assessment, there was an inventory write-off of $1.0 million and $3.4 million for the three and six months ended June 30, 2023, respectively. For the three and six months ended June 30, 2022, there was an inventory write-off of $0.5 million as a result of this assessment.