Who Optimizes SG&A Costs Better? Eli Lilly and Company or Jazz Pharmaceuticals plc

Optimizing SG&A: A Tale of Two Pharmaceutical Giants

In the competitive world of pharmaceuticals, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Eli Lilly and Company and Jazz Pharmaceuticals plc, two industry leaders, have shown distinct strategies over the past decade. From 2014 to 2023, Eli Lilly consistently maintained higher SG&A expenses, averaging around $6.4 billion annually. In contrast, Jazz Pharmaceuticals operated with a leaner budget, averaging approximately $839 million, about 13% of Eli Lilly's expenses.

Despite Eli Lilly's higher absolute costs, their expenses grew by only 5% over the decade, indicating efficient cost management. Jazz Pharmaceuticals, however, saw a significant increase of 231% in their SG&A expenses, reflecting their aggressive expansion strategy. This data highlights the contrasting approaches: Eli Lilly's steady optimization versus Jazz's rapid growth. As the pharmaceutical landscape evolves, these strategies will continue to shape their financial health and market positions.