Who Optimizes SG&A Costs Better? Eli Lilly and Company or Zoetis Inc.

Optimizing SG&A Costs: A Tale of Two Companies

In the competitive landscape of the pharmaceutical and animal health industries, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Eli Lilly and Company and Zoetis Inc. have been at the forefront of this financial balancing act since 2014. Over the past decade, Eli Lilly has consistently maintained higher SG&A expenses, averaging around 6.4 billion annually. In contrast, Zoetis Inc. has managed to keep its SG&A costs significantly lower, averaging approximately 1.7 billion.

A Decade of Financial Strategy

From 2014 to 2023, Eli Lilly's SG&A expenses peaked in 2023, showing a 5% increase from 2014. Meanwhile, Zoetis Inc. saw a 31% increase in the same period, reflecting its strategic expansion. This data highlights the differing approaches of these industry giants in optimizing operational costs, with Zoetis Inc. demonstrating a more aggressive growth strategy.