SG&A Efficiency Analysis: Comparing Novartis AG and Incyte Corporation

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, Novartis AG and Incyte Corporation have showcased contrasting strategies in managing these costs.

Novartis AG: A Steady Giant

From 2014 to 2023, Novartis AG consistently maintained high SG&A expenses, averaging around $14.5 billion annually. Despite a slight dip in 2023, their expenses reflect a robust global presence and extensive marketing efforts.

Incyte Corporation: A Rapid Climber

Incyte Corporation, on the other hand, has seen a dramatic increase in SG&A expenses, growing by over 600% from 2014 to 2023. This surge highlights their aggressive expansion and investment in market penetration.

Conclusion

While Novartis's strategy focuses on sustaining its market dominance, Incyte's rapid growth in SG&A spending underscores its ambition to capture a larger market share.