SG&A Efficiency Analysis: Comparing Merck & Co., Inc. and Galapagos NV

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, Merck & Co., Inc. and Galapagos NV have showcased contrasting strategies. From 2014 to 2023, Merck's SG&A expenses have consistently hovered around $10 billion annually, reflecting a stable yet substantial investment in operational efficiency. In contrast, Galapagos NV's SG&A expenses have seen a dramatic increase, peaking at approximately $239 million in 2022, a staggering 2,500% rise from 2014. This divergence highlights Merck's steady approach versus Galapagos's aggressive expansion strategy. As the industry evolves, these trends offer valuable insights into how companies balance growth with operational costs. Investors and analysts should consider these patterns when evaluating the long-term sustainability and strategic direction of these pharmaceutical giants.