Protagonist Therapeutics, Inc. or Amphastar Pharmaceuticals, Inc.: Who Manages SG&A Costs Better?

SG&A Cost Management: A Tale of Two Biopharma Companies

In the competitive world of biopharmaceuticals, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Amphastar Pharmaceuticals, Inc. and Protagonist Therapeutics, Inc. offer a fascinating case study in this regard. Over the past decade, Amphastar has consistently managed its SG&A costs, with an average annual expense of approximately $58.8 million. In contrast, Protagonist Therapeutics, a smaller player, has seen its SG&A expenses grow from a modest $1.9 million in 2014 to $33.5 million in 2023, reflecting its rapid expansion.

Amphastar's SG&A expenses have increased by about 99% over the same period, while Protagonist's have surged by an astonishing 1,700%. This stark difference highlights the varying strategies and growth trajectories of these companies. As investors and industry watchers, understanding these dynamics can provide valuable insights into each company's operational efficiency and strategic priorities.

Conclusion

While Amphastar maintains a steady hand on its SG&A costs, Protagonist's rising expenses suggest aggressive growth and investment in its future. The question remains: which strategy will yield better long-term results?