Who Optimizes SG&A Costs Better? Novartis AG or Galapagos NV

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, Novartis AG and Galapagos NV have taken different paths in optimizing these costs. From 2014 to 2023, Novartis AG consistently maintained high SG&A expenses, peaking at approximately $16.5 billion in 2018. Despite this, their expenses showed a slight downward trend, decreasing by about 17% by 2023. In contrast, Galapagos NV, a smaller player, saw a dramatic increase in SG&A expenses, rising from $9 million in 2014 to nearly $240 million in 2022, a staggering 2,500% increase. However, 2023 marked a significant reduction, with expenses dropping by over 60% from the previous year. This data highlights the contrasting strategies of a pharmaceutical giant and an emerging biotech firm in managing operational costs.