Analyzing Cost of Revenue: AbbVie Inc. and Galapagos NV

Analyzing Cost of Revenue: AbbVie Inc. vs. Galapagos NV

In the ever-evolving pharmaceutical industry, understanding the cost of revenue is crucial for evaluating a company's financial health. From 2014 to 2023, AbbVie Inc. and Galapagos NV have shown contrasting trends in their cost of revenue. AbbVie Inc., a global biopharmaceutical leader, has seen a staggering 361% increase in its cost of revenue, peaking at $20.4 billion in 2023. This growth reflects its expanding product portfolio and market reach. In contrast, Galapagos NV, a smaller biotech firm, experienced a more volatile trajectory, with its cost of revenue fluctuating significantly, reaching a high of $523 million in 2020 before dropping to $36 million in 2023. This disparity highlights the different scales and strategies of these companies. As investors and analysts look to the future, these trends offer valuable insights into the operational efficiencies and market strategies of these pharmaceutical giants.