Who Optimizes SG&A Costs Better? Zoetis Inc. or Opthea Limited

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., a leader in animal health, and Opthea Limited, a biotech firm focused on eye disease treatments, present a fascinating study in cost management from 2014 to 2023.

Zoetis Inc.: A Steady Hand

Zoetis Inc. has consistently maintained high SG&A expenses, peaking at approximately $2.15 billion in 2023. Despite this, their expenses have grown at a modest rate of around 31% over the decade, reflecting a stable approach to cost management.

Opthea Limited: A Rapid Climb

Opthea Limited, on the other hand, saw a dramatic increase in SG&A expenses, skyrocketing by over 1,500% from 2014 to 2023. This surge, culminating in $41.9 million in 2023, highlights their aggressive expansion strategy.

Conclusion

While Zoetis Inc. showcases stability, Opthea Limited's rapid growth in SG&A expenses suggests a bold, albeit riskier, approach to scaling operations.