Operational Costs Compared: SG&A Analysis of AstraZeneca PLC and United Therapeutics Corporation

A Decade of SG&A: AstraZeneca vs. United Therapeutics

In the ever-evolving pharmaceutical industry, operational efficiency is key to maintaining a competitive edge. Over the past decade, AstraZeneca PLC and United Therapeutics Corporation have demonstrated contrasting strategies in managing their Selling, General, and Administrative (SG&A) expenses.

AstraZeneca's Strategic Investments

AstraZeneca has consistently invested in its operational framework, with SG&A expenses peaking at approximately $18 billion in 2022, marking a 42% increase from 2014. This trend reflects AstraZeneca's commitment to expanding its market presence and enhancing its operational capabilities.

United Therapeutics' Lean Approach

Conversely, United Therapeutics has maintained a leaner operational model, with SG&A expenses hovering around $480 million in recent years. This approach underscores the company's focus on cost efficiency and targeted growth.

Conclusion

These divergent strategies highlight the varied paths companies can take to achieve success in the pharmaceutical sector, each with its own set of challenges and opportunities.