SG&A Efficiency Analysis: Comparing Johnson & Johnson and AbbVie Inc.

SG&A Efficiency: A Tale of Two Giants

In the competitive landscape of the pharmaceutical industry, understanding operational efficiency is crucial. This analysis delves into the Selling, General, and Administrative (SG&A) expenses of two industry titans: Johnson & Johnson and AbbVie Inc., from 2014 to 2023.

Johnson & Johnson: Consistent Leadership

Johnson & Johnson has maintained a steady SG&A expense, averaging around $21 billion annually. Despite a slight dip in 2022, their expenses have remained relatively stable, showcasing their consistent operational strategy.

AbbVie Inc.: A Dynamic Approach

AbbVie Inc. presents a more dynamic trend, with SG&A expenses increasing by approximately 65% from 2014 to 2022. This rise reflects their aggressive expansion and investment in market presence.

Conclusion

While Johnson & Johnson's stability underscores their established market position, AbbVie's increasing expenses highlight their growth-oriented strategy. This comparison offers valuable insights into their differing approaches to market challenges.