Who Optimizes SG&A Costs Better? AbbVie Inc. or Agios Pharmaceuticals, Inc.

Optimizing SG&A Costs: A Tale of Two Companies

In the competitive world of pharmaceuticals, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Over the past decade, AbbVie Inc. and Agios Pharmaceuticals, Inc. have taken distinct paths in optimizing these costs.

From 2014 to 2023, AbbVie Inc. has seen a significant increase in SG&A expenses, peaking at approximately $15.3 billion in 2022. This represents a 98% increase from their 2016 low. In contrast, Agios Pharmaceuticals, Inc. maintained a more stable trajectory, with expenses rising from $19 million in 2014 to $120 million in 2023, a sixfold increase.

While AbbVie's expenses are substantially higher, reflecting its larger scale, Agios's consistent growth in SG&A costs suggests a strategic investment in its operations. This comparison highlights the diverse strategies companies employ to balance growth and cost management in the pharmaceutical industry.