Who Optimizes SG&A Costs Better? Genmab A/S or Grifols, S.A.

Optimizing SG&A Costs: A Tale of Two Companies

In the competitive world of pharmaceuticals, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Over the past decade, Genmab A/S and Grifols, S.A. have showcased contrasting strategies in this domain. From 2014 to 2023, Genmab A/S's SG&A expenses surged by over 4,000%, reflecting its aggressive expansion and investment in growth. In contrast, Grifols, S.A. maintained a more stable trajectory, with a modest increase of around 90% during the same period.

Genmab's strategy appears to focus on scaling operations rapidly, as evidenced by its expenses peaking at nearly three times those of Grifols by 2023. Meanwhile, Grifols's steady approach suggests a focus on efficiency and cost control. This divergence highlights the strategic choices companies make in balancing growth with operational efficiency, offering valuable insights for investors and industry analysts alike.