Cost of Revenue Efficiency: A Tale of Two Companies

Viatris Inc. vs. Galapagos NV

In the ever-evolving pharmaceutical industry, cost efficiency is a critical metric for success. Over the past decade, Viatris Inc. and Galapagos NV have showcased contrasting trajectories in their cost of revenue. From 2014 to 2023, Viatris Inc. consistently reported higher costs, peaking in 2021 with a staggering $12.3 billion. This represents a 204% increase from 2014, highlighting its expansive operations. In contrast, Galapagos NV experienced a more volatile journey, with costs fluctuating significantly. Notably, 2020 marked a sharp decline, with costs plummeting to just $1.6 million, a stark contrast to its 2019 peak. By 2023, Galapagos NV's costs rebounded to $35.9 million, still a fraction of Viatris Inc.'s. This comparison underscores the diverse strategies and challenges faced by these pharmaceutical giants in managing their operational expenses.