SG&A Efficiency Analysis: Comparing Merck & Co., Inc. and Axsome Therapeutics, Inc.

SG&A Efficiency: A Tale of Two Companies

In the ever-evolving pharmaceutical landscape, understanding the efficiency of Selling, General, and Administrative (SG&A) expenses is crucial. Over the past decade, Merck & Co., Inc. and Axsome Therapeutics, Inc. have showcased contrasting trajectories in their SG&A expenditures. From 2014 to 2023, Merck's SG&A expenses have remained relatively stable, averaging around $10 billion annually, with a slight dip in 2020. In contrast, Axsome Therapeutics has seen a dramatic increase, with expenses skyrocketing from $1.4 million in 2014 to over $320 million in 2023, marking a staggering growth of over 22,000%. This divergence highlights Merck's established market presence and operational efficiency, while Axsome's rising expenses reflect its aggressive growth strategy and market expansion efforts. As the pharmaceutical industry continues to innovate, these trends offer valuable insights into the strategic priorities of both companies.