SG&A Efficiency Analysis: Comparing Eli Lilly and Company and Amneal Pharmaceuticals, Inc.

SG&A Efficiency: A Tale of Two Pharmaceutical Giants

In the competitive landscape of pharmaceuticals, managing Selling, General, and Administrative (SG&A) expenses is crucial for operational efficiency. This analysis compares Eli Lilly and Company with Amneal Pharmaceuticals, Inc. over a decade, from 2014 to 2023. Eli Lilly, a stalwart in the industry, consistently reported SG&A expenses averaging around $6.4 billion annually, reflecting its expansive global operations. In contrast, Amneal Pharmaceuticals, a relatively smaller player, averaged $246 million, highlighting its leaner structure.

Interestingly, Eli Lilly's SG&A expenses showed a modest increase of about 5% over the period, peaking in 2023. Meanwhile, Amneal's expenses surged by over 400%, indicating aggressive expansion or increased operational costs. This divergence underscores the different strategic approaches: Eli Lilly's steady growth versus Amneal's rapid scaling. Understanding these trends offers valuable insights into each company's operational strategies and market positioning.