SG&A Efficiency Analysis: Comparing Pharming Group N.V. and Perrigo Company plc

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, Perrigo Company plc and Pharming Group N.V. have showcased contrasting trends in their SG&A expenditures. Perrigo, a global leader in over-the-counter health products, has seen its SG&A expenses grow by approximately 89% from 2014 to 2023. In contrast, Pharming Group N.V., a niche player in biopharmaceuticals, experienced a staggering 2,067% increase in the same period.

Key Insights

• Perrigo's Stability: Despite fluctuations, Perrigo's SG&A expenses have remained relatively stable, reflecting its mature market position.
• Pharming's Growth: The dramatic rise in Pharming's SG&A expenses highlights its aggressive expansion strategy.
  This analysis underscores the diverse strategies employed by pharmaceutical companies to manage operational costs and drive growth.