Who Optimizes SG&A Costs Better? Gilead Sciences, Inc. or Alkermes plc

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

In the competitive world of biopharmaceuticals, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, Gilead Sciences, Inc. and Alkermes plc have demonstrated contrasting approaches to SG&A cost optimization. From 2014 to 2023, Gilead Sciences consistently reported higher SG&A expenses, peaking at approximately $6.1 billion in 2023. In contrast, Alkermes plc's SG&A expenses grew from around $200 million in 2014 to nearly $690 million in 2023, reflecting a more controlled growth trajectory.

Despite Gilead's larger scale, Alkermes has shown a remarkable ability to manage its SG&A costs, increasing by about 245% over the period compared to Gilead's 104% rise. This data highlights the strategic differences in cost management between the two companies, offering valuable insights for investors and industry analysts alike.