Who Optimizes SG&A Costs Better? Novo Nordisk A/S or GSK plc

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, Novo Nordisk A/S and GSK plc have demonstrated contrasting strategies in this domain. From 2014 to 2023, Novo Nordisk A/S consistently reported higher SG&A expenses, peaking at approximately 6.16 billion in 2023, a staggering 130% increase from 2014. In contrast, GSK plc maintained a more stable trajectory, with expenses fluctuating around 9 billion, showing a modest 14% increase over the same period.

This data suggests that while Novo Nordisk A/S invests heavily in SG&A, possibly to fuel growth and market expansion, GSK plc opts for a more conservative approach, potentially focusing on cost efficiency. Understanding these strategies provides valuable insights into how these pharmaceutical giants navigate financial management in a dynamic market.