Johnson & Johnson or Merus N.V.: Who Manages SG&A Costs Better?

SG&A Cost Management: A Tale of Two Companies

In the world of pharmaceuticals, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Johnson & Johnson, a titan in the industry, and Merus N.V., a smaller player, offer a fascinating contrast in SG&A cost management from 2014 to 2023.

Johnson & Johnson: A Steady Hand

Over the past decade, Johnson & Johnson has consistently managed its SG&A expenses, averaging around $21 billion annually. Despite fluctuations, their expenses have remained relatively stable, showcasing their ability to control costs effectively.

Merus N.V.: A Growing Challenge

In contrast, Merus N.V. has seen a significant increase in SG&A expenses, growing from under $1 million in 2015 to nearly $60 million in 2023. This growth reflects their expansion efforts but also highlights the challenges of scaling operations efficiently.

Conclusion

While Johnson & Johnson demonstrates stability, Merus N.V.'s rising costs underscore the complexities of growth in the pharmaceutical sector.