A Decade of Cost Efficiency: Merck & Co., Inc. vs Pfizer Inc.

In the ever-evolving pharmaceutical industry, cost efficiency is a critical metric for success. Over the past decade, Merck & Co., Inc. and Pfizer Inc. have demonstrated contrasting trends in their cost of revenue. From 2014 to 2023, Merck's cost of revenue fluctuated modestly, peaking in 2022 with a 27% increase from its lowest point in 2017. In contrast, Pfizer's cost of revenue surged dramatically, especially in 2021 and 2022, reflecting a 300% increase from its 2020 low. This divergence highlights Pfizer's aggressive expansion and adaptation strategies, possibly driven by its COVID-19 vaccine production. Meanwhile, Merck's steadier approach suggests a focus on maintaining operational efficiency. As these giants continue to navigate the post-pandemic landscape, their cost management strategies will be pivotal in shaping their competitive edge.