Gilead Sciences, Inc. or Grifols, S.A.: Who Manages SG&A Costs Better?

Gilead Sciences vs. Grifols: A Decade of SG&A Management

In the competitive landscape of the pharmaceutical industry, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, Gilead Sciences, Inc. and Grifols, S.A. have demonstrated contrasting approaches to handling these costs. From 2014 to 2023, Gilead Sciences consistently reported higher SG&A expenses, peaking at approximately $6.1 billion in 2023, a 104% increase from 2014. In contrast, Grifols, S.A. maintained a more conservative growth, with expenses rising by 90% to about $1.25 billion in the same period.

This disparity highlights Gilead's aggressive investment in administrative and sales functions, potentially fueling its expansive market reach. Meanwhile, Grifols' steady approach suggests a focus on cost efficiency. As investors and industry analysts evaluate these strategies, the question remains: which company will sustain its competitive edge in the long run?