Breaking Down SG&A Expenses: Merck & Co., Inc. vs Amgen Inc.

A Comparative Analysis of SG&A Expenses: Merck & Co., Inc. vs Amgen Inc.

In the competitive 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: Merck & Co., Inc. and Amgen Inc., from 2014 to 2023. Over this period, Merck consistently allocated a higher percentage of its revenue to SG&A expenses compared to Amgen. Notably, in 2014, Merck's SG&A expenses were approximately 147% higher than Amgen's. However, by 2023, this gap narrowed, with Merck's expenses being only about 70% higher. This trend suggests a strategic shift in Merck's financial management, possibly focusing on cost efficiency. Meanwhile, Amgen's steady increase in SG&A expenses, peaking in 2023, indicates a potential investment in growth initiatives. This financial narrative highlights the dynamic strategies of these pharmaceutical leaders in navigating market challenges.