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

A Tale of Two Biotechs: SG&A Efficiency in Focus

In the competitive world of biotechnology, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Amgen Inc. and Alkermes plc, two industry giants, have shown contrasting approaches over the past decade. From 2014 to 2023, Amgen's SG&A expenses averaged around $5.3 billion annually, dwarfing Alkermes' $483 million. However, when considering the scale of operations, Amgen's expenses represent a smaller percentage of its revenue compared to Alkermes, indicating a more efficient cost management strategy.

Alkermes has seen a steady increase in SG&A costs, rising by approximately 245% over the period, reflecting its growth and expansion efforts. Meanwhile, Amgen's expenses have grown by about 31%, showcasing its ability to maintain cost control while scaling operations. This analysis highlights the importance of strategic financial management in sustaining competitive advantage in the biotech sector.