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

SG&A Cost Management: AbbVie Inc. vs. Amgen Inc.

In the competitive landscape of the pharmaceutical industry, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, AbbVie Inc. and Amgen Inc. have demonstrated contrasting approaches to SG&A cost management. From 2014 to 2023, AbbVie Inc. saw a significant increase in SG&A expenses, peaking at approximately 15.3 billion in 2022, reflecting a 98% rise from 2014. In contrast, Amgen Inc. maintained a more stable trajectory, with expenses growing by only 31% over the same period, reaching around 6.2 billion in 2023. This suggests that Amgen Inc. has been more effective in controlling its SG&A costs relative to revenue growth. As investors and analysts evaluate these giants, understanding their cost management strategies provides valuable insights into their operational efficiencies and long-term sustainability.