Perrigo Company plc or ACADIA Pharmaceuticals Inc.: Who Manages SG&A Costs Better?

SG&A Cost Management: A Tale of Two Companies

In the competitive landscape of pharmaceuticals, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Over the past decade, Perrigo Company plc and ACADIA Pharmaceuticals Inc. have demonstrated contrasting approaches to SG&A cost management.

Perrigo, with its expansive operations, has consistently reported higher SG&A expenses, peaking at approximately $1.27 billion in 2023. Despite this, their expenses have shown a relatively stable trend, with only a 9% increase from 2014 to 2023. In contrast, ACADIA's SG&A expenses have surged by over 1,100% during the same period, reflecting its aggressive growth strategy.

While Perrigo's larger scale justifies its higher expenses, ACADIA's rapid increase highlights its investment in expansion. Investors should consider these trends when evaluating each company's operational efficiency and strategic direction.