Cost of Revenue Trends: Perrigo Company plc vs Wave Life Sciences Ltd.

Cost of Revenue Trends: A Tale of Two Companies

In the ever-evolving landscape of the pharmaceutical and biotechnology sectors, understanding cost structures is crucial. Perrigo Company plc, a stalwart in the pharmaceutical industry, has consistently maintained a high cost of revenue, averaging around $3 billion annually from 2014 to 2023. This reflects its expansive operations and market reach. In contrast, Wave Life Sciences Ltd., a burgeoning biotech firm, has seen its cost of revenue grow from a modest $2.4 million in 2014 to a peak of $175 million in 2019, highlighting its rapid expansion and increased R&D activities.

Key Insights

• Perrigo's Stability: Despite fluctuations, Perrigo's cost of revenue remained relatively stable, with a slight increase of about 12% over the decade.
• Wave's Growth: Wave Life Sciences experienced a staggering increase in cost of revenue, peaking in 2019, indicative of its aggressive growth strategy.

These trends underscore the contrasting business models and growth trajectories of established versus emerging players in the industry.