Who Optimizes SG&A Costs Better? Grifols, S.A. or Merus N.V.

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. Grifols, S.A., a Spanish multinational, and Merus N.V., a Dutch biotech firm, offer a fascinating study in contrasts. From 2014 to 2023, Grifols consistently reported higher SG&A expenses, peaking at approximately €1.25 billion in 2023. This represents a 90% increase over the decade, reflecting its expansive global operations. In contrast, Merus N.V. maintained a leaner approach, with expenses growing from €3.85 million in 2014 to nearly €60 million in 2023, a staggering 1,455% increase. While Grifols' expenses grew steadily, Merus' sharp rise suggests aggressive scaling. This data highlights the strategic choices companies make in balancing growth and cost management. As investors and analysts scrutinize these figures, the question remains: which strategy will yield better long-term returns?