Who Optimizes SG&A Costs Better? Exelixis, Inc. or Amphastar Pharmaceuticals, Inc.

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

In the competitive world of biopharmaceuticals, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. From 2014 to 2023, Exelixis, Inc. and Amphastar Pharmaceuticals, Inc. have shown contrasting approaches to SG&A cost management. Exelixis, Inc. has seen a significant increase in SG&A expenses, rising from approximately $51 million in 2014 to over $542 million in 2023, marking a tenfold increase. This surge reflects their aggressive expansion and investment in growth. In contrast, Amphastar Pharmaceuticals, Inc. has maintained a more stable SG&A expense profile, with a modest increase from around $40 million to $80 million over the same period, doubling their costs. This stability suggests a more conservative approach, focusing on efficiency and cost control. As investors and industry analysts evaluate these strategies, the question remains: which approach will yield better long-term returns?