Cost of Revenue Comparison: Zoetis Inc. vs Xencor, Inc.

Cost of Revenue: A Tale of Two Companies

In the competitive landscape of the pharmaceutical industry, understanding cost structures is crucial. Zoetis Inc., a leader in animal health, and Xencor, Inc., a biopharmaceutical company, present a fascinating contrast in their cost of revenue over the past decade.

Zoetis Inc.: Steady Growth

From 2014 to 2023, Zoetis Inc. has consistently increased its cost of revenue, reflecting its expanding operations and market reach. Starting at approximately $1.7 billion in 2014, Zoetis saw a 59% increase, reaching around $2.7 billion by 2023. This growth underscores Zoetis's robust market strategy and operational efficiency.

Xencor, Inc.: Fluctuating Costs

Conversely, Xencor, Inc. experienced more volatility. Beginning with a modest $18 million in 2014, its cost of revenue peaked at $254 million in 2023, marking a staggering 1,311% increase. This fluctuation highlights the dynamic nature of Xencor's business model and its adaptive strategies in the biopharmaceutical sector.