Vertex Pharmaceuticals Incorporated or Ascendis Pharma A/S: Who Manages SG&A Costs Better?

SG&A Cost Management: Vertex vs. Ascendis

In the competitive world of pharmaceuticals, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, Vertex Pharmaceuticals Incorporated and Ascendis Pharma A/S have shown contrasting approaches to SG&A cost management.

A Decade of Financial Insights

From 2014 to 2023, Vertex Pharmaceuticals consistently reported higher SG&A expenses, peaking at approximately $1.14 billion in 2023. This represents a staggering 272% increase from 2014. In contrast, Ascendis Pharma's SG&A expenses grew from $6.27 million in 2014 to $264 million in 2023, marking a 4,110% increase.

Who Manages Better?

While Vertex's expenses are significantly higher, their growth rate is more controlled compared to Ascendis. This suggests that Vertex, despite higher absolute costs, may have a more stable cost management strategy. However, Ascendis's rapid growth in expenses could indicate aggressive expansion strategies. Understanding these trends is vital for investors and stakeholders aiming to make informed decisions.