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

Managing SG&A Costs: A Tale of Two Companies

In the competitive world of pharmaceuticals, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Over the past decade, Perrigo Company plc and Amphastar Pharmaceuticals, Inc. have shown contrasting approaches to handling these costs. From 2014 to 2023, Perrigo's SG&A expenses averaged around $1.09 billion annually, dwarfing Amphastar's average of approximately $58.8 million. This stark difference highlights Perrigo's larger scale and operational complexity.

However, Amphastar has demonstrated a more consistent control over its SG&A costs, with a modest increase of about 99% over the decade, compared to Perrigo's 89% rise. This suggests that while Perrigo operates on a larger scale, Amphastar's cost management strategies might be more effective in maintaining steady growth. As the pharmaceutical industry continues to evolve, these insights offer valuable lessons in balancing growth with cost efficiency.