GSK plc or Xencor, Inc.: Who Manages SG&A Costs Better?

Managing SG&A Costs: A Tale of Two Companies

In the competitive world of pharmaceuticals and biotechnology, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Over the past decade, GSK plc and Xencor, Inc. have demonstrated contrasting approaches to handling these costs. From 2014 to 2023, GSK's SG&A expenses averaged around $9.8 billion annually, peaking in 2020. In contrast, Xencor's expenses were significantly lower, averaging approximately $26.6 million, with a steady increase over the years.

A Decade of Financial Strategy

GSK's expenses saw a 14% increase from 2014 to 2020, reflecting its expansive global operations. Meanwhile, Xencor's costs surged by over 600%, indicating aggressive growth and investment in innovation. This comparison highlights the strategic differences between a pharmaceutical giant and a nimble biotech firm. As the industry evolves, these financial strategies will play a pivotal role in shaping their future trajectories.