SG&A Efficiency: A Tale of Two Companies

In the competitive landscape of pharmaceuticals, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Over the past decade, Bausch Health Companies Inc. and Amphastar Pharmaceuticals, Inc. have demonstrated contrasting approaches to SG&A efficiency.

Bausch Health's Strategic Management

Bausch Health, with its expansive operations, has consistently maintained high SG&A expenses, peaking at approximately $2.9 billion in 2023. This reflects a strategic investment in marketing and administrative capabilities, crucial for sustaining its market position.

Amphastar's Lean Approach

Conversely, Amphastar Pharmaceuticals has adopted a leaner model, with SG&A expenses growing from $40 million in 2014 to $80 million in 2023. This represents a 100% increase, yet remains a fraction of Bausch's expenditure, highlighting Amphastar's focus on cost efficiency.

These insights underscore the diverse strategies within the pharmaceutical industry, where balancing SG&A expenses can significantly impact a company's financial health.