Regeneron Pharmaceuticals, Inc. or Celldex Therapeutics, Inc.: Who Manages SG&A Costs Better?

SG&A Cost Management: A Tale of Two Biotechs

In the competitive world of biotechnology, managing Selling, General, and Administrative (SG&A) expenses is crucial for sustaining growth and profitability. Regeneron Pharmaceuticals, Inc. and Celldex Therapeutics, Inc. offer a fascinating study in contrasts over the past decade.

From 2014 to 2023, Regeneron consistently reported higher SG&A expenses, peaking at approximately $2.63 billion in 2023. Despite this, their expenses grew at a steady rate, reflecting their expansive operations and robust market presence. In contrast, Celldex's SG&A expenses remained significantly lower, averaging around $24 million annually, with a peak of $36 million in 2016. This suggests a leaner operational model, possibly due to a more focused product pipeline.

While Regeneron's higher expenses might indicate aggressive market strategies, Celldex's cost-effective approach could appeal to investors seeking efficiency. The choice between these two strategies depends on one's investment philosophy: growth versus efficiency.