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

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. Over the past decade, Merck & Co., Inc. and Protagonist Therapeutics, Inc. have demonstrated contrasting approaches to SG&A efficiency.

Merck, a global leader, consistently reported SG&A expenses averaging around $10 billion annually from 2014 to 2023. Despite fluctuations, Merck's expenses remained relatively stable, reflecting its robust operational strategies. In contrast, Protagonist Therapeutics, a smaller biotech firm, saw its SG&A expenses grow from under $2 million in 2014 to over $33 million by 2023, marking a staggering increase of over 1,700%. This growth underscores Protagonist's aggressive expansion and investment in administrative capabilities.

Understanding these trends offers valuable insights into how companies of different scales manage their operational costs, impacting their overall financial health.