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

SG&A Cost Management: AbbVie Inc. vs. Insmed Incorporated

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 Insmed Incorporated have demonstrated contrasting approaches to SG&A cost management.

From 2014 to 2023, AbbVie Inc. has seen a significant increase in SG&A expenses, peaking at approximately $15.3 billion in 2022. This represents a 98% increase from their 2016 low. In contrast, Insmed Incorporated's SG&A expenses have grown more modestly, reaching around $344 million in 2023, marking a tenfold increase since 2014.

While AbbVie's larger scale justifies higher absolute costs, Insmed's rapid percentage growth highlights its aggressive expansion strategy. Investors and analysts should consider these trends when evaluating each company's operational efficiency and strategic direction.