Eli Lilly and Company or Rhythm Pharmaceuticals, Inc.: Who Manages SG&A Costs Better?

SG&A Cost Management: Eli Lilly vs. Rhythm Pharmaceuticals

In the competitive landscape of pharmaceuticals, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Eli Lilly and Company, a stalwart in the industry, has consistently maintained high SG&A costs, averaging around $6.4 billion annually from 2014 to 2023. In contrast, Rhythm Pharmaceuticals, Inc., a newer player, has seen its SG&A expenses grow from a modest $1.2 million in 2014 to $117 million in 2023, reflecting its rapid expansion.

A Decade of Financial Strategy

Eli Lilly's SG&A expenses have shown a steady trend, with a slight increase of about 5% over the decade. Meanwhile, Rhythm Pharmaceuticals has experienced a staggering growth of over 9,500% in the same period. This contrast highlights the different stages of growth and strategic focus between an established giant and an emerging innovator in the pharmaceutical sector.

Conclusion

Understanding these trends offers valuable insights into how these companies allocate resources to support their operations and growth strategies.