SG&A Efficiency Analysis: Comparing Pfizer Inc. and Rhythm Pharmaceuticals, Inc.

SG&A Efficiency: A Tale of Two Companies

In the competitive landscape of pharmaceuticals, understanding operational efficiency is crucial. Over the past decade, Pfizer Inc. and Rhythm Pharmaceuticals, Inc. have showcased contrasting approaches to managing Selling, General, and Administrative (SG&A) expenses. Pfizer, a global giant, consistently reported SG&A expenses averaging around $14 billion annually, reflecting its expansive operations. In contrast, Rhythm Pharmaceuticals, a smaller entity, demonstrated a remarkable growth trajectory, with SG&A expenses surging from a modest $1.2 million in 2014 to over $117 million by 2023. This represents an exponential increase of nearly 9,600%, highlighting Rhythm's aggressive expansion and investment in market penetration. Such insights underscore the diverse strategies employed by pharmaceutical companies in balancing growth and operational efficiency. As the industry evolves, these financial metrics will continue to play a pivotal role in shaping corporate strategies and investor decisions.