Quarterly report pursuant to Section 13 or 15(d)


9 Months Ended
Sep. 30, 2021
Inventory Disclosure [Abstract]  
Inventories Inventories
Inventories are valued under a standard costing methodology on a first-in, first-out 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 include third party manufacturing costs, transportation, storage, insurance, depreciation and allocated internal labor.

The components of inventory as of September 30, 2021 and December 31, 2020 are as follows:
(in thousands) September 30, 2021 December 31, 2020
Raw materials $ 2,217  $ — 
Work in process 12,074  13,927 
Finished goods 5,002  — 
Total inventories $ 19,293  $ 13,927