SG&A Efficiency Analysis: Comparing Johnson & Johnson and ADMA Biologics, Inc.

SG&A Efficiency: A Tale of Two Companies

In the competitive landscape of the pharmaceutical industry, understanding the efficiency of Selling, General, and Administrative (SG&A) expenses is crucial. Over the past decade, Johnson & Johnson and ADMA Biologics, Inc. have showcased contrasting trends in their SG&A expenditures.

Johnson & Johnson: A Steady Giant

From 2014 to 2023, Johnson & Johnson maintained a robust SG&A expense, averaging around $21 billion annually. Despite minor fluctuations, their expenses remained relatively stable, reflecting a consistent operational strategy.

ADMA Biologics: A Rapid Climber

Conversely, ADMA Biologics experienced a dramatic increase in SG&A expenses, surging from approximately $4.8 million in 2014 to nearly $59 million in 2023. This represents a staggering growth of over 1,100%, highlighting their aggressive expansion and investment in administrative capabilities.

These insights underscore the diverse strategies employed by industry leaders and emerging players in managing operational costs.