Ebb & Flow

While virtually all the big cap biotechs report earnings in both GAAP and non-GAAP formats, the latter typically includes charges for depreciation.PDL Bio-Pharma(PDLI), however, has decided to permanently exclude that figure in its guidance going forward.

This year, the company is looking at a $25 million depreciation expense associated with its new production plant, which is slated to start operations mid-year. Clearly, PDLI isn't the only company with a manufacturing plant. Indeed, SG Cowen analyst Phil Nadeau said the company's decision to exclude depreciation from its non-GAAP guidance "makes the company somewhat unique. There's a number of other biotechs with facilities and none of them exclude depreciation. From an analyst's perspective, it would be nice if everyone's non-GAAP guidance was somewhat comparable."...