Inventory

3 Months Ended

Mar. 31, 2025

Note 7. Inventory

Our inventory balance consists of the following (in thousands):


	March 31, 2025		December 31, 2024
Raw materials	$	29,873	$	27,590
API and Work-in-process	351,911		331,178
Finished goods	47,502		48,431
Total inventory	$	429,286	$	407,199

Inventories, stated at the lower of cost and net realizable value, consist of raw materials, active pharmaceutical ingredients ("API"), work in process, and finished goods, inclusive of freight and inventoriable overhead. At March 31, 2025, $64.0 million of inventory was classified as current on the condensed consolidated balance sheet as we expect this inventory to be consumed for commercial use within the next twelve months. At March 31, 2025, $365.3 million of inventory was classified as non-current on the condensed consolidated balance sheet as we did not expect this inventory to be consumed for commercial use within the next twelve months. We obtain some inventory components from a limited number of suppliers due to technology, availability, price, quality or other considerations. The loss of a supplier, the deterioration of our relationship with a supplier, or any unilateral violation of the contractual terms under which we are supplied components by a supplier could adversely affect our total revenues and gross margins.

We capitalize inventory after regulatory approval as the related costs are expected to be recoverable through the commercialization of the product. Costs incurred prior to regulatory approval are recorded as research and development expense in our condensed consolidated statements of operations. At March 31, 2025, inventory with approximately $27.7 million of product costs incurred prior to regulatory approval had not yet been sold. We expect to sell the pre-commercialization inventory over the next 4 to 38 months and, as a result, cost of product revenues will reflect a lower average per unit cost of materials.