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

SG&A Cost Management: AbbVie Inc. vs. Jazz Pharmaceuticals plc

In the competitive landscape of the pharmaceutical industry, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. From 2014 to 2023, AbbVie Inc. and Jazz Pharmaceuticals plc have shown distinct approaches to handling these costs. AbbVie, a global biopharmaceutical leader, has seen its SG&A expenses grow by approximately 66%, peaking in 2022. In contrast, Jazz Pharmaceuticals, known for its focus on sleep and hematology/oncology, has managed a more modest increase of around 230% over the same period. Despite AbbVie's larger scale, Jazz's ability to keep its SG&A expenses relatively low, with a peak in 2021, highlights its efficient cost management strategies. This comparison underscores the importance of strategic financial planning in the pharmaceutical sector, where every dollar saved can be reinvested into research and development, driving future growth.