Merck & Co., Inc. or Alpine Immune Sciences, 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. Merck & Co., Inc., a pharmaceutical giant, and Alpine Immune Sciences, Inc., a burgeoning biotech firm, present a fascinating study in contrasts. Over the past decade, Merck's SG&A expenses have shown a slight decline, averaging around $10 billion annually, with a notable dip to $8.96 billion in 2020. In contrast, Alpine's SG&A costs have surged by nearly 872% from 2014 to 2023, reflecting its aggressive growth strategy. While Merck's expenses are substantial, they represent a smaller percentage of its overall revenue compared to Alpine. This data highlights the different strategic approaches: Merck's focus on efficiency versus Alpine's investment in expansion. Understanding these dynamics offers valuable insights into how companies navigate financial management in their respective growth phases.