Who Optimizes SG&A Costs Better? Merus N.V. or Galapagos NV

Optimizing SG&A Costs: A Tale of Two Biotechs

In the competitive world of biotechnology, managing Selling, General, and Administrative (SG&A) expenses is crucial for financial health. Over the past decade, Galapagos NV and Merus N.V. have taken different paths in optimizing these costs. From 2014 to 2023, Galapagos NV's SG&A expenses surged by over 900%, peaking in 2022. This reflects their aggressive expansion strategy. In contrast, Merus N.V. maintained a more conservative approach, with a 1,450% increase, yet their expenses remained significantly lower than Galapagos NV's. By 2023, Merus N.V. had narrowed the gap, with their SG&A costs reaching 63% of Galapagos NV's. This data highlights the strategic choices each company made in balancing growth and cost management. As the biotech industry evolves, these insights offer a glimpse into how companies can optimize operational efficiency while pursuing innovation.