Novartis AG or Genmab A/S: Who Manages SG&A Costs Better?

Novartis AG vs. Genmab A/S: A Decade of SG&A Management

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 Genmab A/S have demonstrated contrasting approaches to SG&A cost management.

A Comparative Analysis

From 2014 to 2023, Novartis AG consistently reported higher SG&A expenses, averaging around $14.5 billion annually. In contrast, Genmab A/S, a smaller biotech firm, maintained a more modest average of approximately $889 million. Notably, Genmab's SG&A expenses surged by over 4,000% from 2014 to 2023, reflecting its rapid growth and expansion efforts. Meanwhile, Novartis AG's expenses showed a more stable trend, with a slight decrease of around 17% in 2023 compared to 2014.

Strategic Implications

This data highlights the strategic differences between a global pharmaceutical giant and a nimble biotech company, offering insights into their operational priorities and market strategies.