United Therapeutics Corporation or HUTCHMED (China) Limited: Who Manages SG&A Costs Better?

Who Manages SG&A Costs Better: United Therapeutics or HUTCHMED?

In the competitive landscape of the pharmaceutical industry, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. From 2014 to 2023, United Therapeutics Corporation consistently outperformed HUTCHMED (China) Limited in managing these costs. United Therapeutics maintained an average SG&A expense of approximately $394 million annually, while HUTCHMED's average was around $70 million. Despite HUTCHMED's lower absolute expenses, United Therapeutics demonstrated superior efficiency, with a more stable trend over the years.

Notably, in 2021, HUTCHMED's SG&A expenses surged by over 100% compared to 2020, reaching their peak at $127 million. In contrast, United Therapeutics showed a steady increase, peaking at $487 million in 2022. This data highlights United Therapeutics' strategic cost management, making it a leader in SG&A efficiency. Investors and industry analysts should consider these trends when evaluating the financial health and operational efficiency of these companies.