Discussion Post
• How informative are GAAP earnings about Dendreon's "success?" What measure(s) of success would you find more informative (be specific - what measures would you use if you were considering investing in a biotech firm)?
• At the end of fiscal 2007, Dendreon's book value (assets less liabilities) was $40,377,000. At the same time Dendreon's market value (price per share times the number of outstanding shares) was $517,866,066. What do you think accounts for the difference between these two numbers?
• Do you think it makes sense to expense all of Dendreon's R&D? If not, what criteria would you use to determine how much R&D expense to capitalize as an asset? How would your answer affect the income statement and balance sheet (in general...not in dollar terms)?
The response must include a reference list. Using one-inch margins, double-space, Times New Roman 12 pnt font and APA style of writing and citations.