Who Optimizes SG&A Costs Better? Alkermes plc or Vericel Corporation

Optimizing SG&A Costs: A Tale of Two Companies

In the competitive landscape of the pharmaceutical and biotechnology sectors, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Over the past decade, Alkermes plc and Vericel Corporation have demonstrated contrasting approaches to SG&A cost management. From 2014 to 2023, Alkermes plc's SG&A expenses surged by approximately 245%, reflecting a strategic investment in growth and expansion. In contrast, Vericel Corporation, while also increasing its SG&A expenses, maintained a more conservative growth of around 780%, indicating a focus on efficiency and cost control.

Alkermes plc's expenses peaked in 2023, reaching nearly 690 million, while Vericel Corporation's expenses were significantly lower, peaking at about 121 million. This disparity highlights the different scales and strategies of the two companies. As investors and analysts evaluate these trends, the question remains: which strategy will yield better long-term returns?