Who Optimizes SG&A Costs Better? Regeneron Pharmaceuticals, Inc. or Alkermes plc

Optimizing SG&A Costs: A Tale of Two Biopharma Giants

In the competitive world of biopharmaceuticals, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, Regeneron Pharmaceuticals, Inc. and Alkermes plc have demonstrated contrasting approaches to SG&A cost optimization. From 2014 to 2023, Regeneron consistently reported higher SG&A expenses, peaking at approximately $2.63 billion in 2023, a staggering 420% increase from 2014. In contrast, Alkermes maintained a more conservative growth, with SG&A expenses rising by about 245% over the same period, reaching nearly $690 million in 2023.

This data suggests that while Regeneron has expanded its operations significantly, it may face challenges in optimizing its SG&A costs relative to its revenue growth. Meanwhile, Alkermes appears to have adopted a more controlled approach, potentially positioning itself for sustainable long-term growth. Understanding these strategies offers valuable insights into the financial health and strategic priorities of these industry leaders.