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

Novartis AG vs. Xencor, Inc.: A Tale of SG&A Efficiency

In the competitive landscape of the pharmaceutical industry, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. From 2014 to 2023, Novartis AG and Xencor, Inc. have shown contrasting approaches. Novartis, a global giant, consistently reported SG&A expenses in the range of $12.5 billion to $16.5 billion annually. Despite the high figures, Novartis has managed to reduce its SG&A costs by approximately 16% over the decade. In contrast, Xencor, a smaller biotech firm, has seen its SG&A expenses grow from $7.5 million to $53.4 million, a staggering increase of over 600%. This growth reflects Xencor's expansion and investment in its operations. While Novartis focuses on cost efficiency, Xencor's rising expenses highlight its aggressive growth strategy. Understanding these dynamics offers valuable insights into how companies of different scales manage their operational costs.