Summit Therapeutics Inc. or Exelixis, Inc.: Who Manages SG&A Costs Better?

Managing SG&A Costs: A Tale of Two Biotechs

In the competitive world of biotechnology, managing Selling, General, and Administrative (SG&A) expenses is crucial for financial health. Over the past decade, Exelixis, Inc. and Summit Therapeutics Inc. have taken different paths in this regard. From 2014 to 2023, Exelixis saw a staggering 967% increase in SG&A expenses, reflecting its aggressive growth strategy. In contrast, Summit Therapeutics maintained a more conservative approach, with a 315% rise over the same period.

Exelixis's SG&A expenses peaked in 2023, reaching nearly 20 times that of Summit Therapeutics. This disparity highlights Exelixis's expansive operational scale compared to Summit's more focused efforts. While Exelixis's strategy may indicate robust market penetration, Summit's leaner model suggests a focus on efficiency. Investors and industry watchers should consider these strategies when evaluating the companies' long-term sustainability and growth potential.