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Inventories

12 Months Ended

Dec. 31, 2022

5. INVENTORIES

Inventories consisted of the following:


	December 31,
	2022		2021
	(in thousands)
Raw materials	$	7,151	$	—
Work in process		1,681		—
Finished goods		937		—
Total inventories	$	9,769	$	—

The Company capitalizes inventory costs associated with the Company’s products after regulatory approval when, based on management’s judgment, future commercialization is considered probable and the future economic benefit is expected to be realized. Inventory on hand determined to not have a future economic benefit and acquired prior to receipt of the marketing authorization for ALBRIOZA in Canada, totaling approximately $22.9 million, was expensed as research and development expense as incurred. The Company began to capitalize the costs determined to have a probable future economic benefit associated with the production of ALBRIOZA upon receipt of Health Canada approval in June 2022. Finished goods have a shelf life of 12-15 months from the date of manufacture.

Of the inventories reported on balance sheet at December 31, 2022, the Company had $3.2 million of long-term raw materials that are not expected to be realized in cash, sold or consumed during the next 12 months.