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. Novo Nordisk A/S and United Therapeutics Corporation, two giants in the industry, have shown contrasting strategies over the past decade.

Novo Nordisk A/S: A Steady Climb

From 2014 to 2023, Novo Nordisk's SG&A expenses have surged by approximately 130%, reflecting their aggressive expansion and marketing strategies. This Danish company, renowned for its diabetes care products, has consistently increased its spending, peaking in 2023.

United Therapeutics: A Conservative Approach

In contrast, United Therapeutics has maintained a more conservative approach, with SG&A expenses growing by just 25% over the same period. This American biotech firm, focused on rare diseases, has kept its costs relatively stable, showcasing a disciplined financial strategy.

Conclusion

While Novo Nordisk's strategy may indicate a focus on growth, United Therapeutics' approach highlights efficiency. Investors and analysts should consider these strategies when evaluating potential investments.