SG&A Expense Trends: A Tale of Two Companies

In the competitive world of pharmaceuticals, understanding the financial dynamics of industry giants like Merck & Co., Inc. and emerging players such as ADMA Biologics, Inc. is crucial. Over the past decade, from 2014 to 2023, these companies have shown distinct trends in their Selling, General, and Administrative (SG&A) expenses.

Merck, a stalwart in the industry, has maintained a relatively stable SG&A expense, averaging around $10 billion annually. However, a notable dip occurred in 2020, with expenses dropping by approximately 10% compared to the previous year, reflecting strategic cost management during the pandemic.

Conversely, ADMA Biologics, a smaller yet ambitious entity, has seen its SG&A expenses skyrocket by over 1,100% from 2014 to 2023. This surge underscores its aggressive expansion and investment in market penetration.

These contrasting trajectories highlight the diverse strategies employed by established and emerging pharmaceutical companies in navigating market challenges.