Johnson & Johnson or Catalent, Inc.: Who Manages SG&A Costs Better?

A Tale of Two Giants: SG&A Cost Management

In the competitive landscape of the pharmaceutical and healthcare industry, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Johnson & Johnson, a stalwart in the industry, has consistently managed its SG&A costs, averaging around $21 billion annually from 2014 to 2023. In contrast, Catalent, Inc., a rising star, has seen its SG&A expenses grow from approximately $334 million in 2014 to $935 million in 2024, reflecting a significant expansion in its operations.

While Johnson & Johnson's SG&A expenses have remained relatively stable, Catalent's costs have surged by nearly 180% over the decade. This growth indicates Catalent's aggressive expansion strategy, but also raises questions about its long-term cost management. As we look to the future, the ability of these companies to balance growth with cost efficiency will be pivotal in determining their market positions.