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

SG&A Cost Management: A Tale of Two Companies

In the competitive landscape of the pharmaceutical and biotechnology sectors, 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, ImmunityBio, Inc., a burgeoning biotech firm, has seen its SG&A expenses grow from approximately $4 million in 2014 to over $129 million in 2023, reflecting its rapid expansion and investment in growth.

A Decade of Financial Strategy

Over the past decade, Johnson & Johnson's SG&A expenses have shown remarkable stability, with fluctuations of less than 10% year-over-year. This consistency underscores their strategic financial management. Meanwhile, ImmunityBio's expenses have surged by over 2,800%, highlighting their aggressive growth strategy. This comparison offers a fascinating insight into how established giants and emerging innovators navigate financial management in the healthcare industry.