Who Optimizes SG&A Costs Better? Johnson & Johnson or Xencor, Inc.

Optimizing SG&A Costs: A Tale of Two Companies

In the competitive world of pharmaceuticals and biotechnology, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Johnson & Johnson, a global healthcare giant, and Xencor, Inc., a biotechnology innovator, offer a fascinating study in contrasts. From 2014 to 2023, Johnson & Johnson's SG&A expenses showed a slight decline of about 9%, from approximately $21.95 billion to $20.11 billion. This indicates a strategic focus on cost optimization despite their vast scale. In contrast, Xencor, Inc. experienced a significant increase in SG&A expenses, skyrocketing by over 600% from $7.46 million to $53.38 million. This surge reflects Xencor's aggressive growth and expansion strategy. While Johnson & Johnson's expenses are massive, their ability to slightly reduce costs over a decade is noteworthy. Meanwhile, Xencor's rising costs highlight the challenges and investments required for growth in the biotech sector.