Who Optimizes SG&A Costs Better? Zoetis Inc. or Arrowhead Pharmaceuticals, Inc.

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. Zoetis Inc. and Arrowhead Pharmaceuticals, Inc. have taken different paths in this regard over the past decade. From 2014 to 2023, Zoetis consistently reported higher SG&A expenses, peaking at approximately $2.15 billion in 2023. In contrast, Arrowhead's SG&A costs were significantly lower, reaching around $124 million in 2022, a mere fraction of Zoetis's expenses.

Despite the disparity in absolute numbers, Arrowhead's SG&A expenses grew by over 400% from 2014 to 2023, indicating a rapid expansion phase. Meanwhile, Zoetis maintained a more stable growth trajectory, with a 31% increase over the same period. This data highlights the strategic differences in cost management between a large, established player and a nimble, growing company. Missing data for Zoetis in 2024 suggests a need for further analysis.