SG&A Efficiency Analysis: Comparing Rhythm Pharmaceuticals, Inc. and Bausch Health Companies Inc.

SG&A Efficiency: A Tale of Two Companies

In the competitive landscape of pharmaceuticals, managing Selling, General, and Administrative (SG&A) expenses is crucial for financial health. Over the past decade, Bausch Health Companies Inc. and Rhythm Pharmaceuticals, Inc. have showcased contrasting trajectories in their SG&A efficiency.

Bausch Health's Steady Climb

From 2014 to 2023, Bausch Health consistently maintained high SG&A expenses, peaking at approximately $2.9 billion in 2023. This represents a 44% increase from 2014, reflecting their expansive operational strategies.

Rhythm Pharmaceuticals' Rapid Growth

Conversely, Rhythm Pharmaceuticals started with modest SG&A expenses of around $1.2 million in 2014, skyrocketing to $117 million by 2023. This exponential growth, nearly 100 times the initial value, underscores their aggressive market penetration and scaling efforts.

Strategic Implications

While Bausch Health's steady increase suggests a focus on sustaining market presence, Rhythm's rapid rise indicates a strategic push towards rapid expansion. Investors and stakeholders should consider these trends when evaluating the companies' future prospects.