Alkermes plc or Agios Pharmaceuticals, Inc.: Who Manages SG&A Costs Better?

Managing SG&A Costs: Alkermes plc vs. Agios Pharmaceuticals, Inc.

In the competitive landscape of pharmaceuticals, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, Alkermes plc and Agios Pharmaceuticals, Inc. have demonstrated contrasting approaches to SG&A cost management. From 2014 to 2023, Alkermes consistently reported higher SG&A expenses, peaking at approximately $690 million in 2023, a 245% increase from 2014. In contrast, Agios Pharmaceuticals, Inc. showed a more modest growth, with SG&A expenses rising by 526% over the same period, reaching around $120 million in 2023. This disparity highlights Alkermes' larger operational scale and possibly more extensive marketing and administrative efforts. However, Agios' leaner cost structure could indicate a more efficient allocation of resources. As the industry evolves, these companies' strategies in managing SG&A costs will be pivotal in determining their competitive edge.