Novartis AG or Axsome Therapeutics, Inc.: Who Manages SG&A Costs Better?

SG&A Cost Management: Novartis AG vs. Axsome Therapeutics, Inc.

In the competitive landscape of pharmaceuticals, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Over the past decade, Novartis AG and Axsome Therapeutics, Inc. have demonstrated contrasting approaches to SG&A cost management.

A Decade of Financial Insights

From 2014 to 2023, Novartis AG consistently maintained high SG&A expenses, averaging around $14.5 billion annually. Despite fluctuations, their expenses peaked in 2018, reflecting strategic investments in global operations. In contrast, Axsome Therapeutics, Inc., a smaller player, showed a dramatic increase in SG&A costs, rising from $1.4 million in 2014 to $323 million in 2023. This 23,000% surge underscores their aggressive expansion and market penetration efforts.

Strategic Implications

While Novartis's stable SG&A spending highlights operational maturity, Axsome's rapid increase suggests a focus on growth and innovation. Investors should consider these trends when evaluating long-term financial health and strategic direction.