Who Optimizes SG&A Costs Better? AbbVie Inc. or argenx SE

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 argenx SE have taken different paths in optimizing these costs. From 2014 to 2023, AbbVie Inc. consistently reported higher SG&A expenses, peaking in 2022 with a 97% increase from 2016. In contrast, argenx SE, a smaller player, saw its SG&A expenses grow by over 16,000% during the same period, reflecting its rapid expansion and investment in growth. While AbbVie's expenses are significantly higher, they represent a smaller percentage of its revenue, indicating efficient cost management. Argenx SE's rising expenses highlight its aggressive growth strategy. This comparison underscores the diverse strategies companies employ to balance cost management with growth ambitions in the pharmaceutical industry.