Who Optimizes SG&A Costs Better? Johnson & Johnson or Neurocrine Biosciences, 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, Johnson & Johnson and Neurocrine Biosciences, Inc. have taken different paths in optimizing these costs.

From 2014 to 2023, Johnson & Johnson's SG&A expenses have shown a slight decline, with a 9% reduction from 2014 to 2022, before a slight uptick in 2023. This indicates a strategic focus on cost efficiency, despite their massive scale. In contrast, Neurocrine Biosciences, Inc. has seen a dramatic increase in SG&A expenses, rising nearly 50 times from 2014 to 2023. This surge reflects their aggressive expansion and investment in growth.

While Johnson & Johnson's approach highlights stability and efficiency, Neurocrine's strategy underscores growth and market penetration. Both strategies offer valuable insights into managing SG&A costs in the pharmaceutical industry.