SG&A Efficiency: A Tale of Two Biopharma Giants

In the competitive world of biopharmaceuticals, managing operational costs is crucial for sustained growth. Over the past decade, Exelixis, Inc. and Alkermes plc have demonstrated contrasting strategies in their Selling, General, and Administrative (SG&A) expenses. From 2014 to 2023, Alkermes plc's SG&A expenses surged by approximately 245%, reflecting a strategic investment in expanding its market presence. In contrast, Exelixis, Inc. saw a staggering increase of over 960% in the same period, indicating a rapid scaling of operations.

Year-on-Year Insights

In 2014, Alkermes plc's SG&A expenses were nearly four times that of Exelixis, Inc. However, by 2023, Exelixis had significantly closed the gap, with its expenses reaching about 79% of Alkermes's. This shift highlights Exelixis's aggressive growth strategy, potentially positioning it as a formidable competitor in the biopharma sector.

Understanding these trends offers valuable insights into the strategic priorities of these industry leaders.