Selling, General, and Administrative Costs: Alkermes plc vs Xencor, Inc.

A Tale of Two Biotechs: Alkermes plc vs Xencor, Inc.

In the competitive world of biotechnology, managing operational costs is crucial for success. Over the past decade, Alkermes plc and Xencor, Inc. have demonstrated contrasting strategies in their Selling, General, and Administrative (SG&A) expenses. From 2014 to 2023, Alkermes plc's SG&A expenses surged by approximately 245%, reflecting its aggressive expansion and investment in administrative capabilities. In contrast, Xencor, Inc. maintained a more conservative growth, with its SG&A expenses increasing by around 615%, albeit from a much smaller base. This divergence highlights the different paths these companies have taken in scaling their operations. As of 2023, Alkermes plc's SG&A expenses are nearly 13 times higher than those of Xencor, Inc., underscoring its larger operational footprint. Investors and industry analysts should consider these trends when evaluating the financial health and strategic direction of these biotech firms.