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

Novartis AG vs. Novavax, Inc.: 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 Novavax, Inc. have demonstrated contrasting approaches to SG&A cost management.

From 2014 to 2023, Novartis AG consistently reported SG&A expenses averaging around $14.5 billion annually, with a slight decline of approximately 14% by 2023. In contrast, Novavax, Inc. started with significantly lower SG&A costs, around $20 million in 2014, but saw a dramatic increase, peaking at nearly $490 million in 2022. This represents a staggering growth of over 2300%.

While Novartis AG's expenses reflect stability and scale, Novavax's rising costs highlight its aggressive expansion strategy. Understanding these trends offers valuable insights into each company's operational priorities and financial strategies.