Novartis AG or MannKind Corporation: Who Manages SG&A Costs Better?

Novartis AG vs. MannKind Corporation: 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 MannKind Corporation have demonstrated contrasting approaches to SG&A cost management.

A Comparative Analysis

From 2014 to 2023, Novartis AG consistently reported SG&A expenses averaging around $14.5 billion annually, reflecting its expansive global operations. Despite a slight decline of approximately 17% from 2018 to 2023, Novartis's strategic investments in marketing and administration have supported its market leadership.

Conversely, MannKind Corporation, a smaller player, maintained an average SG&A expense of $78 million, with a notable peak in 2015. This represents a more agile approach, focusing on lean operations to maximize innovation and growth.

Conclusion

While Novartis's scale demands higher SG&A costs, MannKind's lean strategy highlights its focus on efficiency. Both companies offer valuable lessons in cost management strategies.