SG&A Efficiency Analysis: Comparing Amgen Inc. and Perrigo Company plc

SG&A Efficiency: A Tale of Two Companies

In the competitive landscape of the pharmaceutical industry, understanding operational efficiency is crucial. Amgen Inc. and Perrigo Company plc, two giants in the sector, have shown distinct trends in their Selling, General, and Administrative (SG&A) expenses over the past decade. From 2014 to 2023, Amgen's SG&A expenses have grown by approximately 31%, reflecting a strategic investment in operational capabilities. In contrast, Perrigo's expenses increased by about 89%, indicating a more aggressive expansion or restructuring strategy.

Key Insights

Amgen's expenses peaked in 2023, reaching a level 32% higher than in 2014, while Perrigo's expenses saw a significant rise, nearly doubling over the same period. This divergence highlights differing strategic priorities and market responses. Investors and analysts should consider these trends when evaluating the companies' future growth and profitability.