SG&A Efficiency Analysis: Comparing Novartis AG and Amneal Pharmaceuticals, Inc.

SG&A Efficiency: A Tale of Two Pharmaceutical Giants

In the competitive world of pharmaceuticals, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. This analysis compares the SG&A efficiency of Novartis AG and Amneal Pharmaceuticals, Inc. from 2014 to 2023. Over this period, Novartis AG consistently reported SG&A expenses averaging around $14.5 billion annually, reflecting its expansive global operations. In contrast, Amneal Pharmaceuticals, Inc., a smaller player, averaged approximately $246 million annually, showcasing a leaner operational model.

Interestingly, while Novartis's SG&A expenses peaked in 2018 at $16.5 billion, Amneal's expenses showed a steady upward trend, culminating in a 2023 figure of $429 million, a 407% increase from 2014. This growth highlights Amneal's strategic investments in scaling operations. Understanding these trends provides valuable insights into how these companies allocate resources to drive growth and maintain market competitiveness.