Selling, General, and Administrative Costs: Johnson & Johnson vs Gilead Sciences, Inc.

A Decade of SG&A: Johnson & Johnson vs. Gilead Sciences

In the ever-evolving landscape of the pharmaceutical industry, understanding the financial strategies of leading companies is crucial. Over the past decade, Johnson & Johnson and Gilead Sciences have demonstrated contrasting approaches to managing their Selling, General, and Administrative (SG&A) expenses. From 2014 to 2023, Johnson & Johnson consistently allocated a significant portion of its budget to SG&A, averaging around 21 billion annually. In contrast, Gilead Sciences, with a more conservative approach, averaged approximately 4.4 billion annually, marking a 75% lower expenditure compared to its counterpart.

Interestingly, while Johnson & Johnson's SG&A expenses showed a slight decline, Gilead Sciences experienced a steady increase, peaking at 6 billion in 2023. This trend highlights Gilead's growing investment in administrative and sales efforts, potentially signaling a strategic shift. As these giants navigate the complexities of the healthcare market, their financial decisions offer valuable insights into their long-term visions.