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

In the competitive world of biotechnology, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, Genmab A/S and Exelixis, Inc. have demonstrated contrasting strategies in this area. From 2014 to 2023, Genmab A/S saw its SG&A expenses skyrocket by over 4,000%, reaching a peak in 2023. In contrast, Exelixis, Inc. experienced a more modest increase of approximately 970% during the same period.

A Decade of Financial Strategy

Genmab A/S's aggressive expansion is evident in its rising SG&A costs, which reflect its strategic investments in growth and market penetration. Meanwhile, Exelixis, Inc. has maintained a more conservative approach, focusing on steady growth and cost management. This divergence highlights the different paths companies can take in the biotech sector, balancing between rapid expansion and sustainable growth.