SG&A Efficiency Analysis: Comparing Merck & Co., Inc. and Novartis AG

SG&A Efficiency: A Decade of Insights

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 Novartis AG have demonstrated distinct trends in their SG&A expenditures. From 2014 to 2023, Merck's SG&A expenses decreased by approximately 9.5%, reflecting a strategic focus on cost efficiency. In contrast, Novartis saw a more modest reduction of around 16.7%, indicating a different approach to managing operational costs.

Key Observations

• Merck & Co., Inc.: Starting at a peak in 2014, Merck's SG&A expenses showed a downward trend, reaching their lowest in 2020. This suggests a consistent effort in optimizing operational efficiency.
• Novartis AG: Despite fluctuations, Novartis maintained relatively high SG&A expenses, peaking in 2018, before a significant drop in 2023, possibly due to strategic restructuring.

These insights highlight the dynamic strategies employed by these pharmaceutical giants in managing their operational costs.