Zoetis Inc. or United Therapeutics Corporation: Who Manages SG&A Costs Better?

Who Manages SG&A Costs Better: Zoetis Inc. or United Therapeutics Corporation?

In the competitive landscape of the pharmaceutical industry, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. From 2014 to 2023, Zoetis Inc. and United Therapeutics Corporation have shown distinct strategies in handling these costs. Zoetis Inc., a leader in animal health, consistently reported higher SG&A expenses, peaking at approximately $2.15 billion in 2023. This reflects their expansive market reach and investment in growth. In contrast, United Therapeutics Corporation, focusing on innovative therapies for rare diseases, maintained a more conservative approach, with SG&A expenses reaching around $487 million in 2022. Over the decade, Zoetis's SG&A costs grew by about 31%, while United Therapeutics saw a 28% increase. This data highlights the strategic differences between a broad-market leader and a niche innovator, offering insights into their operational efficiencies and market strategies.