SG&A Efficiency: A Tale of Two Companies

In the world of pharmaceuticals, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability and operational efficiency. This analysis compares the SG&A efficiency of two industry players: Johnson & Johnson and Rhythm Pharmaceuticals, Inc., from 2014 to 2023.

Johnson & Johnson: A Steady Giant

Johnson & Johnson, a stalwart in the pharmaceutical industry, consistently managed its SG&A expenses, averaging around $21 billion annually. Despite fluctuations, their expenses remained relatively stable, showcasing their ability to maintain operational efficiency over the years.

Rhythm Pharmaceuticals: A Growing Contender

In contrast, Rhythm Pharmaceuticals, Inc., a smaller player, saw a dramatic increase in SG&A expenses, from just over $1 million in 2014 to approximately $118 million in 2023. This growth reflects their expanding operations and market presence.

This comparison highlights the diverse strategies and growth trajectories within the pharmaceutical sector.