AbbVie Inc. or Alkermes plc: Who Manages SG&A Costs Better?

SG&A Cost Management: AbbVie Inc. vs. Alkermes plc

In the competitive landscape of pharmaceuticals, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. From 2014 to 2023, AbbVie Inc. and Alkermes plc have shown contrasting approaches to SG&A cost management. AbbVie, a global biopharmaceutical leader, has seen its SG&A expenses grow by approximately 66%, peaking in 2022. In contrast, Alkermes, a biopharmaceutical company focused on central nervous system disorders, has maintained a more stable SG&A expense profile, with a modest increase of around 245% over the same period.

While AbbVie's expenses are significantly higher, reflecting its larger scale and market reach, Alkermes' steady cost management highlights its strategic focus on efficiency. This comparison underscores the diverse strategies employed by pharmaceutical companies in managing operational costs, with each approach tailored to their unique business models and market positions.