Who Optimizes SG&A Costs Better? Gilead Sciences, Inc. or Mesoblast Limited

Optimizing SG&A Costs: A Tale of Two Companies

In the competitive world of biotechnology, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Gilead Sciences, Inc. and Mesoblast Limited, two prominent players, have shown contrasting approaches over the past decade. From 2014 to 2023, Gilead's SG&A expenses have surged by over 100%, peaking at approximately $6 billion in 2023. This reflects a strategic investment in administrative capabilities and market expansion. In contrast, Mesoblast has maintained a more conservative approach, with expenses fluctuating around $50 million, indicating a focus on lean operations. Interestingly, both companies have shown a similar downward trend in SG&A expenses, suggesting a shared industry-wide shift towards cost optimization. As we look to the future, the absence of data for Gilead in 2024 raises questions about their strategic direction. Will they continue to expand, or will they adopt a more frugal approach like Mesoblast?