GSK plc or United Therapeutics Corporation: Who Manages SG&A Costs Better?

Managing SG&A Costs: GSK plc vs. United Therapeutics Corporation

In the competitive landscape of pharmaceuticals, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, GSK plc and United Therapeutics Corporation have demonstrated contrasting approaches to SG&A cost management. From 2014 to 2023, GSK's SG&A expenses averaged around $9.8 billion annually, peaking in 2020. In contrast, United Therapeutics maintained a leaner structure, with average annual expenses of approximately $394 million, showcasing a more efficient cost management strategy.

Despite GSK's larger scale, United Therapeutics' ability to keep SG&A costs at roughly 4% of GSK's expenses highlights their strategic focus on operational efficiency. This comparison underscores the importance of cost management in sustaining competitive advantage in the pharmaceutical industry. As companies navigate the complexities of healthcare markets, these insights offer valuable lessons in balancing growth with cost control.