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 Verona Pharma plc have taken distinct paths in optimizing these costs.

AbbVie Inc.: A Steady Climb

From 2014 to 2023, AbbVie Inc. has seen a significant increase in SG&A expenses, peaking in 2022 with a 97% rise from 2016. This growth reflects AbbVie's strategic investments in marketing and administration to support its expanding portfolio.

Verona Pharma plc: A Different Scale

In contrast, Verona Pharma's SG&A expenses have remained relatively modest, with a notable increase in 2023, reaching nearly 50 million. This represents a substantial growth of over 2,600% from 2014, indicating a strategic shift in their operational focus.

Both companies illustrate different strategies in managing SG&A costs, reflecting their unique market positions and growth trajectories.