Operational Costs Compared: SG&A Analysis of Novartis AG and United Therapeutics Corporation

A Decade of SG&A: Novartis AG vs. United Therapeutics Corporation

In the ever-evolving pharmaceutical landscape, operational efficiency is paramount. Over the past decade, Novartis AG and United Therapeutics Corporation have showcased contrasting strategies in managing Selling, General, and Administrative (SG&A) expenses. Novartis, a global giant, consistently reported SG&A expenses averaging around $14.5 billion annually, peaking in 2018. In contrast, United Therapeutics, a more niche player, maintained a leaner approach with expenses averaging $394 million, reflecting a strategic focus on cost efficiency.

Key Insights

• Novartis AG: Despite fluctuations, SG&A expenses remained relatively stable, with a notable dip in 2023, suggesting potential strategic shifts or cost-cutting measures.
• United Therapeutics Corporation: Demonstrated a steady increase in SG&A, peaking in 2022, indicating possible expansion or increased market activities.

This analysis underscores the diverse operational strategies within the pharmaceutical sector, highlighting the balance between growth and efficiency.