Cost of Revenue: Key Insights for Novartis AG and Galapagos NV

Cost of Revenue Trends: Novartis AG vs. Galapagos NV

In the ever-evolving pharmaceutical industry, understanding cost structures is crucial. This analysis delves into the cost of revenue for Novartis AG and Galapagos NV from 2014 to 2023. Novartis AG, a global healthcare leader, consistently reported a high cost of revenue, peaking in 2018 with approximately $18.4 billion. However, a notable decline of around 32% was observed by 2023, reflecting strategic shifts or market dynamics.

Conversely, Galapagos NV, a biotech innovator, exhibited a more volatile trend. Starting at $111 million in 2014, their cost of revenue surged by over 370% to $524 million in 2020, before plummeting to $36 million in 2023. This fluctuation may indicate changes in operational scale or investment strategies. These insights highlight the contrasting financial landscapes of established giants and emerging players in the pharmaceutical sector.