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

SG&A Cost Management: Perrigo vs. Xencor

In the competitive landscape of pharmaceutical and biotechnology industries, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Perrigo Company plc and Xencor, Inc. offer a fascinating study in contrasts. From 2014 to 2023, Perrigo's SG&A expenses have consistently been higher, averaging around $1.09 billion annually, while Xencor's expenses averaged approximately $26.6 million. Despite Perrigo's larger scale, Xencor's expenses grew at a faster rate, increasing by over 600% compared to Perrigo's 89% increase. This suggests that while Perrigo maintains a steady control over its costs, Xencor is rapidly expanding its operations. Investors and analysts should consider these trends when evaluating the operational efficiency and growth strategies of these companies. Understanding how each company manages its SG&A costs can provide insights into their financial health and strategic priorities.