Sanofi or Madrigal Pharmaceuticals, Inc.: Who Manages SG&A Costs Better?

Managing SG&A Costs: Sanofi vs. Madrigal Pharmaceuticals

In the competitive world of pharmaceuticals, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, Sanofi and Madrigal Pharmaceuticals, Inc. have demonstrated contrasting approaches to SG&A cost management.

Sanofi, a global leader, consistently reported SG&A expenses averaging around $9.8 billion annually from 2014 to 2023. Despite fluctuations, their expenses remained relatively stable, reflecting a robust cost management strategy. In contrast, Madrigal Pharmaceuticals, a smaller player, saw a dramatic increase in SG&A costs, rising from approximately $15 million in 2014 to over $108 million in 2023, marking a staggering 600% increase.

This data highlights the challenges smaller companies face in scaling operations while managing costs. As Madrigal expands, its ability to control SG&A expenses will be pivotal in sustaining growth and competitiveness.