Managing SG&A Costs: A Tale of Two Biotechs

In the competitive world of biotechnology, managing Selling, General, and Administrative (SG&A) expenses is crucial for financial health. Over the past decade, Merus N.V. and Geron Corporation have taken different paths in this regard. From 2014 to 2023, Geron Corporation's SG&A expenses surged by over 300%, peaking in 2023. In contrast, Merus N.V. saw a more moderate increase of approximately 150% during the same period.

A Closer Look

In 2014, Merus N.V. started with significantly lower SG&A costs compared to Geron. However, by 2023, Merus had nearly caught up, reflecting its strategic investments in growth. Despite this, Geron's expenses remained higher, indicating a potentially aggressive expansion strategy. This data highlights the importance of balancing cost management with growth ambitions in the biotech sector.

Understanding these trends can provide valuable insights for investors and industry analysts alike.