Cost of Revenue: A Tale of Two Biotechs

In the dynamic world of biotechnology, understanding cost structures is crucial for investors and stakeholders. This analysis compares the cost of revenue for Exelixis, Inc. and Veracyte, Inc. from 2014 to 2023. Over this period, Exelixis saw a staggering increase of over 3,400% in its cost of revenue, starting from a modest $2 million in 2014 to an impressive $72 million by 2023. Meanwhile, Veracyte's cost of revenue grew by approximately 580%, from $17 million to $113 million. This growth reflects the companies' expanding operations and market reach. Notably, Veracyte consistently maintained a higher cost of revenue, indicating a potentially larger scale of operations or different cost management strategies. As these companies continue to innovate, understanding their financial trajectories offers valuable insights into their operational efficiencies and market strategies.