Novartis AG vs Exelixis, Inc.: Efficiency in Cost of Revenue Explored

Exploring Cost Efficiency: Novartis AG vs Exelixis, Inc.

In the ever-evolving pharmaceutical industry, cost efficiency is a critical metric for success. This analysis delves into the cost of revenue for Novartis AG and Exelixis, Inc. from 2014 to 2023. Over this period, Novartis AG consistently reported a significantly higher cost of revenue, peaking at approximately $18.4 billion in 2018. In contrast, Exelixis, Inc. demonstrated a more modest cost structure, with a notable increase of over 3,400% from 2014 to 2023, reaching around $72.5 million. This stark difference highlights the scale and operational strategies of these two companies. While Novartis AG's cost of revenue decreased by about 28% from its peak, Exelixis, Inc. showed a steady upward trend, reflecting its growth trajectory. This comparison underscores the diverse approaches to cost management within the pharmaceutical sector, offering insights into their financial strategies and market positioning.