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

Amgen Inc. vs. Veracyte, Inc.: A Tale of SG&A Efficiency

In the competitive landscape of biotechnology, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Amgen Inc., a giant in the biotech industry, and Veracyte, Inc., a rising star, offer a fascinating study in contrasts. From 2014 to 2023, Amgen's SG&A expenses have consistently been higher, reflecting its expansive operations. However, Veracyte's expenses, while significantly lower, have shown a sharper increase, growing by over 350% during the same period.

Amgen's SG&A costs peaked in 2023, reaching approximately 6.2 billion, a 31% increase from 2014. In contrast, Veracyte's expenses rose from around 40 million in 2014 to 184 million in 2023. This growth highlights Veracyte's rapid expansion and investment in scaling its operations. The data underscores the different strategies these companies employ in managing their operational costs, with Amgen focusing on sustaining its vast infrastructure and Veracyte investing in growth.