Who Optimizes SG&A Costs Better? Alkermes plc or Apellis Pharmaceuticals, Inc.

Optimizing SG&A Costs: A Tale of Two Biopharma Giants

In the competitive world of biopharmaceuticals, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, Alkermes plc and Apellis Pharmaceuticals, Inc. have demonstrated contrasting strategies in this area.

A Decade of Financial Strategy

From 2014 to 2023, Alkermes plc consistently reported higher SG&A expenses, peaking at approximately $690 million in 2023. This represents a 245% increase from their 2014 expenses. In contrast, Apellis Pharmaceuticals, Inc. started with minimal SG&A costs, but by 2023, their expenses surged to around $500 million, marking an exponential growth of over 17,000% from 2014.

Strategic Implications

Alkermes' steady increase suggests a controlled expansion strategy, while Apellis' rapid rise indicates aggressive market penetration efforts. Investors and industry analysts should consider these trends when evaluating the companies' long-term financial health and market strategies.