Who Optimizes SG&A Costs Better? Summit Therapeutics Inc. or Axsome Therapeutics, Inc.

Optimizing SG&A Costs: A Tale of Two Therapeutics

In the competitive world of biotechnology, managing Selling, General, and Administrative (SG&A) expenses is crucial for financial health. Over the past decade, Axsome Therapeutics, Inc. and Summit Therapeutics Inc. have taken different paths in optimizing these costs.

Axsome's Exponential Growth

Axsome Therapeutics has seen a staggering increase in SG&A expenses, growing from approximately $1.4 million in 2014 to over $320 million in 2023. This represents a growth of over 22,000%, reflecting their aggressive expansion and investment in administrative capabilities.

Summit's Steady Approach

In contrast, Summit Therapeutics has maintained a more conservative trajectory, with SG&A expenses increasing from around $6.8 million in 2014 to $28 million in 2023, a growth of about 310%. This steady approach suggests a focus on sustainable growth and cost management.

Both companies illustrate distinct strategies in managing operational costs, offering valuable insights into the financial strategies of biotech firms.