Who Optimizes SG&A Costs Better? Merck & Co., Inc. or Bristol-Myers Squibb Company

Optimizing SG&A Costs: A Tale of Two Giants

In the competitive landscape of the pharmaceutical industry, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Over the past decade, Merck & Co., Inc. and Bristol-Myers Squibb Company have showcased contrasting strategies in optimizing these costs. From 2014 to 2023, Merck consistently maintained higher SG&A expenses, averaging around $10 billion annually, compared to Bristol-Myers Squibb's $6 billion. However, Bristol-Myers Squibb demonstrated a more aggressive reduction strategy, cutting costs by approximately 20% from 2014 to 2018, before a notable increase in 2020. Meanwhile, Merck's expenses remained relatively stable, with a slight decrease of about 10% over the same period. This data highlights the strategic choices each company makes in balancing operational efficiency with market expansion. As the industry evolves, these insights provide a window into how leading firms navigate financial management to sustain growth.