Breaking Down SG&A Expenses: Johnson & Johnson vs Novartis AG

A Comparative Analysis of SG&A Expenses: Johnson & Johnson vs. Novartis AG

In the ever-evolving landscape of the pharmaceutical industry, understanding the financial strategies of leading companies is crucial. This analysis delves into the Selling, General, and Administrative (SG&A) expenses of two giants: Johnson & Johnson and Novartis AG, from 2014 to 2023. Over this period, Johnson & Johnson consistently allocated a higher percentage of its revenue to SG&A expenses compared to Novartis AG. Notably, in 2018, Johnson & Johnson's SG&A expenses peaked at approximately 22.5 billion, marking a 10% increase from 2014. In contrast, Novartis AG's highest expenditure was in 2018, with a 16% rise from 2014. This trend highlights Johnson & Johnson's aggressive investment in marketing and administration, potentially driving its market dominance. As the industry faces new challenges, these financial strategies will play a pivotal role in shaping future growth trajectories.