Novartis AG or BioMarin Pharmaceutical Inc.: Who Manages SG&A Costs Better?

SG&A Cost Management: Novartis AG vs. BioMarin Pharmaceutical Inc.

In the competitive landscape of the pharmaceutical industry, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, Novartis AG and BioMarin Pharmaceutical Inc. have demonstrated contrasting approaches to SG&A cost management. From 2014 to 2023, Novartis AG consistently reported higher SG&A expenses, peaking at approximately $16.5 billion in 2018. In contrast, BioMarin's expenses grew steadily, reaching around $937 million in 2023. Despite Novartis's larger scale, BioMarin's expenses increased by over 200% during this period, reflecting its aggressive growth strategy. Meanwhile, Novartis managed to reduce its SG&A costs by 17% from 2018 to 2023, showcasing its efficiency in cost control. This analysis highlights the strategic differences between a global giant and a niche player in managing operational costs, offering valuable insights for investors and industry analysts.