SG&A Efficiency Analysis: Comparing Eli Lilly and Company and United Therapeutics Corporation

SG&A Efficiency: A Tale of Two Companies

In the competitive landscape of the pharmaceutical industry, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, Eli Lilly and Company and United Therapeutics Corporation have demonstrated contrasting approaches to SG&A efficiency.

Eli Lilly, a global leader, has consistently maintained high SG&A expenses, averaging around $6.4 billion annually from 2014 to 2023. Despite fluctuations, their expenses peaked in 2023, reflecting a strategic investment in marketing and administration. In contrast, United Therapeutics, a smaller player, has kept its SG&A expenses significantly lower, averaging approximately $394 million annually. This lean approach highlights their focus on operational efficiency.

The data reveals a 10% increase in Eli Lilly's SG&A expenses over the decade, while United Therapeutics saw a 25% rise, albeit from a smaller base. These trends underscore the diverse strategies employed by these companies in navigating the pharmaceutical market.