Who Optimizes SG&A Costs Better? GSK plc or Protagonist Therapeutics, Inc.

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, GSK plc and Protagonist Therapeutics, Inc. have taken different paths in optimizing these costs. GSK, a global giant, has consistently maintained SG&A expenses around $9 billion annually, peaking in 2020. In contrast, Protagonist Therapeutics, a smaller player, has seen a steady increase from $1.9 million in 2014 to $33 million in 2023, reflecting its growth trajectory.

While GSK's expenses have fluctuated, they managed a 27% reduction in 2022, showcasing their ability to adapt in challenging times. Protagonist's expenses, though smaller in scale, have grown by over 1,700% in the same period, indicating aggressive expansion. This comparison highlights the strategic differences in cost management between established and emerging pharmaceutical companies.