Pfizer Inc. or Merus N.V.: Who Manages SG&A Costs Better?

A Tale of Two Companies: SG&A Efficiency in Focus

In the competitive world of pharmaceuticals, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Pfizer Inc., a global giant, and Merus N.V., a smaller biotech firm, offer a fascinating contrast in SG&A management from 2014 to 2023. Pfizer's SG&A expenses remained relatively stable, averaging around $14 billion annually, with a slight dip in 2020 to $11.6 billion, likely due to pandemic-related cost adjustments. In contrast, Merus N.V. saw a dramatic increase in SG&A expenses, skyrocketing from under $1 million in 2015 to nearly $60 million by 2023, reflecting its aggressive growth strategy. While Pfizer's expenses are over 200 times larger, Merus's rapid increase highlights its expansion efforts. This comparison underscores the diverse strategies in managing operational costs within the pharmaceutical industry.