SG&A Efficiency Analysis: Comparing AbbVie Inc. and Takeda Pharmaceutical Company Limited

SG&A Efficiency: A Tale of Two Pharmaceutical Giants

In the competitive landscape of pharmaceuticals, understanding the efficiency of Selling, General, and Administrative (SG&A) expenses is crucial. Over the past decade, AbbVie Inc. and Takeda Pharmaceutical Company Limited have showcased contrasting trends in their SG&A expenditures. From 2014 to 2023, AbbVie Inc. saw a steady increase in SG&A expenses, peaking in 2022 with a 97% rise from 2016. In contrast, Takeda's SG&A expenses surged by approximately 72% from 2014 to 2023, reflecting its aggressive expansion strategy. Notably, Takeda's expenses in 2023 were nearly 10 times higher than AbbVie's, highlighting its significant market footprint. However, the absence of AbbVie's 2024 data suggests a potential shift or strategic realignment. This analysis underscores the importance of SG&A efficiency in driving profitability and competitive advantage in the pharmaceutical sector.