|3 Months Ended|
Mar. 31, 2021
|Inventory Disclosure [Abstract]|
Inventories are valued under a standard costing technique on a first-in, first out (FIFO) basis and are stated at the lower of cost or net realizable value. The Company capitalizes inventory costs related to products to be sold in the ordinary course of business. The Company makes a determination of capitalizing inventory costs for a product based on, among other factors, status of regulatory approval, information regarding safety, efficacy and expectations relating to commercial sales and recoverability of costs. For our product LUPKYNIS, the Company commenced capitalization of inventory once FDA approval was deemed to be probable, which occurred during the third quarter of 2020. Capitalized costs of inventories for LUPKYNIS mainly includes third party manufacturing costs, transportation, storage, insurance, depreciation and allocated internal labor.
The components of inventory as of March 31, 2021 and December 31, 2020 are as follows:
The entire disclosure for inventory. Includes, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the classes of inventory, and the nature of the cost elements included in inventory.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef