Viatris Inc. or Arrowhead Pharmaceuticals, Inc.: Who Manages SG&A Costs Better?

SG&A Cost Management: A Tale of Two Companies

In the competitive landscape of pharmaceuticals, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Viatris Inc. and Arrowhead Pharmaceuticals, Inc. offer a fascinating study in contrasts. Over the past decade, Viatris has consistently reported SG&A expenses that are approximately 50 times higher than those of Arrowhead. This disparity highlights the scale and operational differences between the two companies.

From 2014 to 2023, Arrowhead's SG&A expenses grew by nearly 300%, peaking in 2022. In contrast, Viatris saw a more modest increase of around 210% over the same period, with a notable spike in 2023. The data suggests that while Arrowhead is rapidly expanding its operational footprint, Viatris is managing a much larger scale of operations. However, the absence of data for Viatris in 2024 leaves room for speculation on future trends.

Understanding these dynamics is essential for investors and stakeholders aiming to gauge the financial health and strategic direction of these pharmaceutical giants.