Novartis AG or Teva Pharmaceutical Industries Limited: Who Manages SG&A Costs Better?

Novartis vs. Teva: A Decade of SG&A Management

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 Teva Pharmaceutical Industries Limited have showcased contrasting strategies in this domain. From 2014 to 2023, Novartis consistently reported higher SG&A expenses, peaking in 2018 with a 10% increase from the previous year. In contrast, Teva's SG&A costs have steadily declined, dropping by approximately 31% over the same period. This trend highlights Teva's aggressive cost-cutting measures, especially evident in the 2020-2023 period, where expenses fell by 5%. Meanwhile, Novartis's expenses saw a significant reduction in 2023, marking a 13% decrease from 2022. These figures underscore the strategic differences between the two giants: Novartis's focus on expansive growth versus Teva's emphasis on lean operations. As the industry evolves, these strategies will continue to shape their financial landscapes.