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Inventory

6 Months Ended

Jun. 30, 2023

4. Inventory

Inventory consisted of the following:


	June 30,		December 31,
(in thousands)	2023		2022
Raw materials	$	12,874	$	10,262
Work in process		97,945		86,712
Finished goods		17,016		18,077
Total	$	127,835	$	115,051

Inventory is stated at the lower of cost or estimated net realizable value with cost determined under the first-in first-out method. The determination of excess or obsolete inventory requires judgment including consideration of many factors, such as estimates of future product demand, current and future market conditions, product expiration information, and potential product obsolescence, among others.

The Company began capitalizing YUSIMRY inventory in the second quarter of 2022 and had $40.1 million and $23.7 million of such inventory as of June 30, 2023 and December 31, 2022, respectively. Inventory expected to be sold more than twelve months from the balance sheet date is classified as inventory, non-current on the condensed consolidated balance sheets. As of June 30, 2023 and December 31, 2022, the non-current portion of inventory consisted of raw materials, work in process and a portion of finished goods. The following table presents the inventory balance sheet classifications:


	June 30,		December 31,
(in thousands)	2023		2022
Inventory	$	63,989	$	38,791
Inventory, non-current		63,846		76,260
Total	$	127,835	$	115,051

Prepaid manufacturing of $17.6 million as of June 30, 2023 includes prepayments of $13.9 million to contract manufacturing organizations (“CMOs”) for manufacturing services for our products, which the Company expects to be

converted into inventory within the next twelve months; and prepayments of $3.7 million to various CMOs for research and development pipeline programs. Prepaid manufacturing of $17.9 million as of December 31, 2022 included prepayments of $13.0 million to CMOs for manufacturing services of the Company’s products, which the Company will be converting into inventory during 2023; and prepayments of $4.9 million to various CMOs for research and development pipeline programs.