SG&A Efficiency Analysis: Comparing Gilead Sciences, Inc. and Xencor, Inc.

SG&A Efficiency: A Tale of Two Biotech Giants

In the ever-evolving biotech industry, understanding operational efficiency is crucial. This analysis compares the Selling, General, and Administrative (SG&A) expenses of Gilead Sciences, Inc. and Xencor, Inc. from 2014 to 2023. Gilead, a leader in antiviral drugs, consistently outspends Xencor, a smaller player focused on antibody therapeutics, by a significant margin. In 2023, Gilead's SG&A expenses reached approximately $6.1 billion, a 104% increase from 2014, while Xencor's expenses grew by 615% to about $53 million. This stark contrast highlights Gilead's expansive operations and market reach compared to Xencor's more focused approach. Over the decade, Gilead's expenses grew at an average annual rate of 7%, whereas Xencor's expenses surged at an average of 22% annually. This data underscores the differing scales and strategies of these companies, offering insights into their operational priorities and market positioning.