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

Managing SG&A Costs: A Tale of Two Companies

In the competitive world of pharmaceuticals, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, Merck & Co., Inc. and ImmunityBio, Inc. have taken different paths in managing these costs.

From 2014 to 2023, Merck's SG&A expenses have remained relatively stable, averaging around $10 billion annually. This consistency reflects Merck's robust cost management strategies, allowing it to focus on innovation and market expansion. In contrast, ImmunityBio's SG&A expenses have shown significant volatility, with a peak in 2015 and a gradual increase towards 2023. Despite this, ImmunityBio's expenses are a fraction of Merck's, highlighting its leaner operational model.

This comparison underscores the diverse strategies in the pharmaceutical industry, where giants like Merck prioritize stability, while emerging players like ImmunityBio focus on agility and growth.