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

SG&A Cost Management: A Tale of Two Companies

In the competitive landscape of the pharmaceutical industry, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Johnson & Johnson, a stalwart in the sector, has consistently maintained SG&A expenses around $21 billion annually over the past decade. In contrast, Sarepta Therapeutics, Inc., a smaller player, has seen its SG&A costs rise from approximately $49 million in 2014 to nearly $482 million in 2023, marking a staggering increase of over 880%.

A Decade of Financial Strategy

While Johnson & Johnson's SG&A expenses have shown a slight downward trend, decreasing by about 9% from 2014 to 2023, Sarepta's expenses have surged, reflecting its aggressive growth strategy. This comparison highlights the different financial strategies employed by established giants and emerging innovators in the industry. Understanding these dynamics is essential for investors and stakeholders aiming to navigate the complexities of the pharmaceutical market.