SG&A Efficiency Analysis: Comparing Axsome Therapeutics, Inc. and Veracyte, Inc.

SG&A Efficiency: A Tale of Two Biotechs

In the dynamic world of biotechnology, understanding a company's operational efficiency is crucial. Over the past decade, Axsome Therapeutics, Inc. and Veracyte, Inc. have showcased contrasting trends in their Selling, General, and Administrative (SG&A) expenses. From 2014 to 2023, Axsome's SG&A expenses skyrocketed by over 23,000%, reflecting its aggressive expansion and investment in growth. In contrast, Veracyte's expenses grew by approximately 350%, indicating a more measured approach.

Key Insights

• Axsome Therapeutics: Starting with modest expenses in 2014, Axsome's SG&A costs surged, peaking in 2023. This growth underscores its strategic focus on scaling operations and market presence.
• Veracyte, Inc.: While Veracyte's expenses also increased, the growth was steadier, suggesting a balanced strategy between expansion and cost management.

These trends highlight the diverse strategies employed by biotech firms in navigating the competitive landscape.