Who Optimizes SG&A Costs Better? Takeda Pharmaceutical Company Limited or Alkermes plc

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

In the competitive world of pharmaceuticals, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. This analysis compares the SG&A cost optimization strategies of Takeda Pharmaceutical Company Limited and Alkermes plc from 2014 to 2023.

A Decade of Financial Strategy

Over the past decade, Takeda has consistently reported higher SG&A expenses, peaking at approximately 1.05 trillion in 2023. In contrast, Alkermes has shown a more modest increase, with expenses rising from around 200 million in 2014 to nearly 690 million in 2023. This represents a growth of over 240% for Alkermes, while Takeda's expenses grew by about 72% during the same period.

Insights and Implications

The data suggests that while Takeda operates on a larger scale, Alkermes may be more efficient in managing its SG&A costs relative to its size. This efficiency could provide Alkermes with a competitive edge in the long run, especially if it continues to optimize its operational costs.