SG&A Efficiency Analysis: Comparing Merck & Co., Inc. and Rhythm Pharmaceuticals, 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 Rhythm Pharmaceuticals, Inc. have demonstrated contrasting approaches to SG&A efficiency.

Merck & Co., Inc.: A Steady Giant

From 2014 to 2023, Merck's SG&A expenses have shown a consistent pattern, averaging around $10 billion annually. Despite fluctuations, Merck's strategic management has kept its SG&A expenses relatively stable, reflecting its robust operational efficiency.

Rhythm Pharmaceuticals, Inc.: A Growing Contender

In contrast, Rhythm Pharmaceuticals has experienced a dramatic increase in SG&A expenses, from just over $1 million in 2014 to approximately $117 million in 2023. This 9,500% surge highlights Rhythm's aggressive expansion and investment in growth.

Conclusion

This analysis underscores the diverse strategies in SG&A management within the pharmaceutical industry, offering insights into how companies balance growth and efficiency.