Summary of Tarsus Pharmaceuticals Conference Call Company Overview - Tarsus Pharmaceuticals is a commercial stage company focused on the eye care space, having launched its product Xtembi in August 2023 [2][3] - Xtembi is an eye drop treatment for demodex blepharitis, showing significant efficacy with 85% of patients experiencing clinically meaningful improvement [4][3] Market Opportunity - Demodex blepharitis affects approximately 25 million Americans, with a specific target market of about 9 million patients currently in clinics [10][12] - The company has only treated a couple hundred thousand patients since launch, indicating substantial growth potential [12] Product Efficacy and Safety - Xtembi is easy to diagnose and has a simple treatment paradigm, contributing to its success [5][4] - The treatment is a six-week course, administered twice daily [33] Pipeline Developments - Tarsus plans to initiate a Phase II study for ocular rosacea, a condition affecting 15-18 million patients, with a significant unmet need [6][58] - The company is also exploring the use of the same active ingredient in Xtembi for Lyme disease, with promising Phase II data showing a 97% tick kill rate within 24 hours [7][64] Sales and Marketing Strategy - Tarsus has one of the largest eye care sales forces, with 150 representatives targeting both ophthalmologists and optometrists [44][45] - The company is focusing on physician education to increase awareness of demodex blepharitis and the importance of diagnosing it during eye exams [15][16] Financial Performance - Tarsus reported $78 million in revenue for Q1, with guidance for Q2 indicating 85,000 to 90,000 bottles dispensed [25][26] - The gross to net discount was approximately 47% in Q1, expected to decrease to 42-43% by Q4 [25][27] Direct-to-Consumer (DTC) Campaign - The company plans to spend $70-80 million on DTC marketing, focusing on various media channels [38] - The effectiveness of the DTC campaign will be closely monitored to ensure a positive return on investment [39][41] Future Guidance - Tarsus is not providing annual revenue guidance yet but is optimistic about continued growth driven by its sales force and DTC efforts [50][51] - The company anticipates a 20% annualized retreatment rate for patients, indicating potential for recurring revenue [30][32] International Expansion - Tarsus is exploring opportunities in Europe and Japan, with potential NDA filings expected by 2027 [53][54] - The company is assessing pricing dynamics and regulatory requirements in these markets [54][55] Cash Position - As of Q1, Tarsus had approximately $48 million in cash, providing a healthy balance sheet to support ongoing operations and clinical studies [68]

Summary of Tarsus Pharmaceuticals (TARS) FY Conference Call Company Overview - Tarsus Pharmaceuticals is a commercial stage company focused on eye care, with its first medicine, Xtendvi, launched in September 2023, showing potential blockbuster status with projected revenues over a billion dollars [4][15][74]. Key Products and Pipeline - **Xtendvi**: Launched successfully with quarter-over-quarter growth and strong underlying demand. The product targets Demodex blepharitis, a prevalent condition affecting approximately 25 million patients in the U.S. [4][9][10]. - **Ocular Rosacea Treatment**: A new product in development using the same active ingredient as Xtendvi, aimed at a market with no FDA-approved therapeutics [5][58]. - **Lyme Disease Treatment**: An oral prophylactic treatment that Tarsus plans to outlicense, with a phase two study anticipated next year [6][68]. Market Dynamics and Growth Factors - The company has targeted 15,000 eye care professionals, achieving 90% coverage across all payers, which has facilitated the growth of Xtendvi [12][10]. - The sales force has expanded, with a focus on educating eye care professionals and patients about Demodex blepharitis, leading to increased prescriptions [18][19][20]. - Direct-to-consumer (DTC) campaigns initiated in Q4 2023 have driven consumer awareness and demand, although the impact on prescription volume is expected to materialize over one to two quarters [39][44]. Financial Performance and Projections - Initial revenue projections for 2024 were around $55 million, which the company has tripled due to strong market adoption and effective sales strategies [15][17]. - Gross-to-net discounts are expected to decline to a target range of 42-43% by the end of the year, influenced by the introduction of Medicare Part D coverage [54][56]. Clinical Data and Efficacy - Clinical data for Xtendvi showed that 85% of patients experienced clinically meaningful improvement with a benign safety profile [9]. - The company is focused on demonstrating the efficacy of its products through ongoing studies and market research, particularly for ocular rosacea and Lyme disease [60][71]. Challenges and Considerations - The company faces challenges in educating physicians about the prevalence of Demodex blepharitis and the need for treatment, as many patients may be asymptomatic [22][26]. - The need for a reproducible scale for clinical endpoints in the ocular rosacea study is critical for regulatory approval [63][65]. Cash Position - As of Q1 2025, Tarsus reported a cash balance of approximately $408 million, with future guidance on cash flow positive status pending revenue evaluations [74]. Conclusion - Tarsus Pharmaceuticals is positioned for growth with a strong product pipeline and effective market strategies, but it must continue to navigate educational challenges and regulatory requirements to maximize its potential in the eye care market.

Summary of Tarsus Conference Call Company Overview - **Company**: Tarsus - **Product**: XtendV, launched in September 2023 - **Market Focus**: Demodex blepharitis, ocular rosacea, Lyme disease Key Points Product Launch and Market Penetration - XtendV has experienced strong demand and revenue growth since its launch, with over 90% payer coverage including Medicare and commercial plans [2][3] - The company targets an initial segment of 9 million patients out of an estimated 25 million in the U.S. suffering from Demodex blepharitis [9][10] - The initial target includes patients with endemic blepharitis and meibomian gland dysfunction (MGD) [10] Clinical Efficacy and Safety - Over 85% of patients in Phase III studies reported clinically meaningful results, with a favorable safety profile [6] - The treatment is a six-week regimen, with a noted recurrence rate of about 40% between months six and twelve post-treatment [28][29] Sales and Marketing Strategy - The company has expanded its sales force by hiring an additional 50 sales representatives to enhance market penetration and reduce territory sizes for better efficiency [17][19] - Education campaigns for eye care professionals (ECPs) have been crucial in increasing awareness and adoption of the treatment [12][22] Payer Dynamics and Reimbursement - Rapid payer uptake is attributed to the pharmacoeconomic benefits of XtendV compared to previous treatments like tea tree oil, which were less effective [31][34] - The company reports a gross-to-net discount of approximately 47%, with expectations to decrease to the low 40s by Q4 [41][42] Pipeline and Future Studies - Tarsus is exploring additional indications, including ocular rosacea and Lyme disease, with plans for Phase IV studies in MGD and other conditions [46][51] - The company is developing a scale for assessing ocular rosacea severity, aiming for a Phase II study later this year [52] Financial Outlook - As of Q1, Tarsus reported approximately $48 million in cash, sufficient to support ongoing growth and upcoming studies [56] - The company has not yet provided revenue guidance due to the uncertainty surrounding direct-to-consumer (DTC) impacts [57] Additional Insights - The treatment addresses a significant unmet need in the market, with no FDA-approved alternatives for Demodex blepharitis prior to XtendV [34][35] - The company is focused on operational excellence and evidence generation to support ongoing market expansion [12][46]

Financial Data and Key Metrics Changes - The company reported $180 million in net sales for the full year 2024 and $70.8 million in the first quarter of 2025, indicating strong revenue generation for a new product [8][10] - The company has generated over $250 million in revenues for Xtendvi, showcasing significant commercial success [8] Business Line Data and Key Metrics Changes - Xtendvi has seen a rapid increase in prescriptions, with over 200,000 scripts issued, indicating a strong market demand [19] - The company is targeting approximately 9 million patients actively seeking treatment for Demodex blepharitis and related conditions, suggesting a substantial growth opportunity [18][19] Market Data and Key Metrics Changes - The company achieved 90% payer coverage, with 45% of patients covered by commercial insurance and 45% by Medicare, which has positively impacted the launch [10] - The company is focusing on educating eye care professionals and patients about Demodex blepharitis, which is a relatively unknown condition, to drive further growth [21][22] Company Strategy and Development Direction - The company plans to expand its product offerings to include treatments for ocular rosacea and Lyme disease, indicating a strategic focus on unmet medical needs [29][36] - The company is considering partnerships for international expansion, particularly in Europe and Japan, while addressing regulatory and manufacturing challenges [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth, stating that the initial commercial success is not just a one-time event but part of a longer-term opportunity [18][19] - The company is optimistic about the impact of its direct-to-consumer campaign and expects to see further acceleration in growth in the latter half of the year [44] Other Important Information - The company has a healthy balance sheet with approximately $48 million on hand as of March 31, which is expected to support its near-term strategies [40][41] - The company is developing a gel formulation for ocular rosacea, which addresses a significant patient population with unmet needs [31][32] Q&A Session Summary Question: How has the initial commercial success been affected by pent-up demand? - Management believes the growth will continue and is not solely due to pent-up demand, as they are just beginning to tap into the market [18] Question: Is there more educational work needed on the prescriber or patient side? - Management indicated that both sides require further education, with a focus on increasing awareness among patients about the condition [21][22] Question: Are there repeat patients, or do they typically get cured with one prescription? - Clinical studies showed about 40% of patients experienced a recurrence of symptoms within six to twelve months, indicating the potential for repeat prescriptions [23][24] Question: What are the timelines for the cash runway and future studies? - Management has not provided specific guidance on cash flow breakeven but indicated that the current balance sheet is sufficient to support ongoing initiatives [40][41] Question: What are the key near-term catalysts for the company? - Management highlighted quarterly script numbers and the impact of the direct-to-consumer campaign as key indicators to watch for growth [43][44]

Core Viewpoint - Tarsus Pharmaceuticals, Inc. (TARS) has experienced significant selling pressure, resulting in a 15.6% decline in stock price over the past four weeks, but analysts anticipate improved earnings reports in the near future [1] Group 1: Technical Indicators - The Relative Strength Index (RSI) is utilized to identify oversold stocks, with a reading below 30 indicating oversold conditions [2] - TARS has an RSI reading of 29.83, suggesting that the heavy selling may be exhausting, potentially leading to a price rebound [5] Group 2: Fundamental Indicators - Analysts have raised earnings estimates for TARS by 19.5% over the last 30 days, indicating a positive trend that typically correlates with price appreciation [6] - TARS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, further supporting the potential for a turnaround [7]

Summary of Tarsus Pharmaceuticals (TARS) 2025 Conference Call Company Overview - Tarsus Pharmaceuticals is a commercial company based in Orange County, California, focusing on eye care treatments, particularly the launch of their drug Xtampi for blepharitis treatment [3][4]. Key Highlights - **Product Launch Success**: The launch of Xtampi has exceeded expectations, with Q1 revenue recorded at approximately $78.2 million, representing a 20% growth from Q4 [4]. - **Market Potential**: The drug targets a significant patient population, with an estimated 25 million patients in the U.S. suffering from demodex-related conditions, and aims to reach 9 million patients actively visiting doctors [3][4]. - **Sales Force Impact**: The expansion of the sales force has been a major tailwind, contributing to extraordinary growth in Q1, surpassing initial expectations despite typical seasonal challenges [19][20]. Financial Metrics - **Revenue and Dispensed Bottles**: In Q1, Tarsus dispensed 72,000 bottles of Xtampi, with a gross-to-net discount of about 47%, expected to decline to the low 40s in subsequent quarters [4]. - **Patient Coverage**: Over 90% of lives are covered by payers for Xtampi, which is considered remarkable in the current environment [11][12]. Pipeline Developments - **Ocular Rosacea**: Tarsus is initiating a Phase II study for ocular rosacea, targeting 15-18 million patients, with no current FDA-approved treatments available [5][58]. - **Lyme Disease Program**: A prophylactic oral treatment for Lyme disease is also in the pipeline, with plans for a Phase 2b study in 2026 [6]. Competitive Landscape - **Lack of Competition**: Xtampi is positioned as a best-in-class product with no direct competition, as existing treatments do not effectively address the root cause of demodex infestation [10][16]. - **Potential Complementary Products**: Other products in development, such as pimecrilimus, may serve as complementary treatments rather than direct competitors [14][15]. Market Dynamics - **Optometrist Engagement**: The trend of optometrists taking on more medical management roles is increasing, allowing them to bill for comprehensive exams and follow-ups, which enhances patient retention and practice growth [34][37]. - **Direct-to-Consumer (DTC) Marketing**: The DTC program is showing promising early results, with increased website visits and engagement correlating with future prescription growth [29][30]. Future Outlook - **TAM Growth**: The total addressable market (TAM) is expected to grow, with the potential to treat a significant portion of the 9 million targeted patients over time [45][46]. - **Data Generation**: Tarsus plans to conduct multiple Phase IV studies to expand its market presence and validate the efficacy of its products across various patient segments [48]. Regulatory and Market Considerations - **Medicare Part D Impact**: The introduction of Medicare Part D coverage has reduced friction for patient access, positively impacting revenue [50][52]. - **Exploration of International Markets**: Tarsus is considering opportunities in Europe but currently focuses on the U.S. market [56]. Conclusion - Tarsus Pharmaceuticals is positioned for significant growth with its innovative product offerings and strategic market engagement, particularly in the eye care sector. The company is optimistic about its future prospects, driven by a strong sales force, effective marketing strategies, and a robust pipeline of new treatments.

Core Insights - Tarsus Pharmaceuticals has launched a direct-to-consumer TV campaign for its eyedrop Xdemvy (lotilaner) aimed at treating Demodex blepharitis, marking a significant marketing strategy just over a year after the product's launch [1] Company Summary - Tarsus Pharmaceuticals is actively promoting its product Xdemvy through a direct-to-consumer approach, indicating a shift towards more aggressive marketing tactics to enhance product visibility and sales [1]

Core Insights - Tarsus Pharmaceuticals reported a quarterly loss of $0.64 per share, which is better than the Zacks Consensus Estimate of a loss of $0.69, and an improvement from a loss of $1.01 per share a year ago, indicating a 36.6% year-over-year improvement [1] - The company achieved revenues of $78.34 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 8.06% and showing a significant increase from $27.61 million in the same quarter last year [2] - Tarsus Pharmaceuticals has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance relative to market expectations [2] Financial Performance - The company has shown an earnings surprise of 7.25% for the recent quarter and an 11.76% surprise in the previous quarter, reflecting positive momentum in earnings performance [1][2] - The current consensus EPS estimate for the upcoming quarter is -$0.38, with expected revenues of $86.76 million, while the estimate for the current fiscal year is -$1.22 on revenues of $361.17 million [7] Market Position - Tarsus Pharmaceuticals shares have underperformed the market with a decline of about 6.3% since the beginning of the year, compared to a decline of 5.3% for the S&P 500 [3] - The company holds a Zacks Rank 2 (Buy), indicating expectations for the stock to outperform the market in the near future based on favorable estimate revisions [6] Industry Context - The Medical - Biomedical and Genetics industry, to which Tarsus Pharmaceuticals belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - In Q1 2025, Tarsus Pharmaceuticals generated over $78 million in Xtendi sales, representing a year-over-year increase of 217% [5][21] - Approximately 72,000 bottles of Xtendi were dispensed to patients, with a quarter-over-quarter growth of 18% [14][21] - Total operating expenses were approximately $104.6 million, an increase of $14 million compared to Q4 2024, primarily driven by direct-to-consumer advertising and related commercial costs [22] Business Line Data and Key Metrics Changes - Xtendi's sales growth was driven by an expanded sales force, which has led to a significant increase in prescribing frequency among eye care professionals (ECPs) [14][15] - The number of ECPs writing more than one prescription per week increased by approximately 110% compared to the end of Q3 2024 [14] Market Data and Key Metrics Changes - The company reported that over 90% of commercial and Medicare lives are covered, which has significantly reduced barriers to physician adoption [15][16] - The DTC campaign has increased average weekly website visits by 140% in March 2025 compared to December 2024 [16] Company Strategy and Development Direction - Tarsus aims to establish itself as a leader in eye care by creating new categories of treatment, such as ocular rosacea, and expanding the market for Xtendi [7][10] - The company is focused on leveraging its strong financial position to drive growth and advance its pipeline of category-creating medicines [11][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of Xtendi, anticipating an increase in bottles dispensed to a range of 85,000 to 90,000 in Q2 2025 [26] - The company expects to see continued growth despite typical seasonal headwinds in the summer [26] Other Important Information - Tarsus recently secured approximately $135 million in equity financing, which strengthens its financial position and supports ongoing growth initiatives [10][25] - The company is on track to initiate a Phase II trial for TPO4 in ocular rosacea later this year [10][59] Q&A Session Summary Question: Have there been any disruptions in meeting with the FDA regarding pipeline products? - Management confirmed there have been no delays in meeting schedules with the FDA [32] Question: What is the current split between Medicare and commercial prescriptions? - The prescribing volume is currently split relatively equally between Medicare and commercial prescriptions, with Medicare coverage acting as a significant growth driver [33][34] Question: What are the key drivers for repeat prescribing? - Key drivers include an expanded sales force and improved coverage, which have led to increased frequency of prescribing among doctors [38][40] Question: How is the feedback from the ORION Registry and MGD data being received? - Doctors are responding positively to the new data, which is prompting them to diagnose and treat more patients across various segments [55][56] Question: What are the potential factors that might affect future guidance? - Factors include the impact of the DTC campaign and macroeconomic events that could influence visibility [64] Question: What is the expected level of stocking in the channel? - The company does not anticipate significant changes in inventory levels, which have remained consistent at around two to two and a half weeks [67]

Financial Data and Key Metrics Changes - In Q1 2025, Tarsus Pharmaceuticals generated over $78 million in Xtendi sales, a year-over-year increase of 217%, driven by approximately 72,000 bottles dispensed to patients [4][20] - The gross to net discount was approximately 47%, reflecting strong coverage and an adjustment to Medicare accrual estimates [20][21] - Total operating expenses were approximately $104.6 million, an increase of $14 million compared to Q4 2024, primarily due to direct-to-consumer advertising and related marketing costs [21][22] - The company ended the quarter with approximately $407.9 million in cash and cash equivalents, bolstered by a recent equity raise of approximately $135 million [23] Business Line Data and Key Metrics Changes - Xtendi's sales growth was driven by an expanded sales force and increased prescribing frequency among eye care professionals (ECPs), with a 110% increase in ECPs writing more than one prescription per week compared to Q3 2024 [13][14] - The company anticipates dispensing between 85,000 to 90,000 bottles in Q2 2025, with a gross to net discount expected in the range of 45% to 47% [25] Market Data and Key Metrics Changes - The company reported that over 90% of commercial and Medicare lives are covered, significantly reducing barriers to physician adoption [15][20] - The DTC campaign has led to a 140% increase in average weekly website visits in March 2025 compared to December 2024 [15][18] Company Strategy and Development Direction - Tarsus aims to establish itself as a leader in eye care by creating new categories of treatment, with a focus on Xtendi and the upcoming Xembi launch [4][11] - The company is exploring global opportunities for Xtendi, particularly in Japan and Europe, with potential regulatory approval in Europe expected by 2027 [7][8] - Tarsus is also advancing its pipeline with TPO4 for ocular rosacea, targeting a significant and underserved market [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of Xtendi, citing strong sales force performance and effective DTC campaigns as key drivers [19][26] - The company anticipates continued revenue growth, despite potential headwinds in Q3 due to seasonal factors, with stronger growth expected in Q4 [25][26] Other Important Information - The company has a proven blueprint for success and is well-positioned for sustained revenue growth in the coming years [11][26] - Management highlighted the importance of patient education and awareness as critical components of their growth strategy [78] Q&A Session Summary Question: Have there been any disruptions in meeting with the FDA regarding pipeline products? - Management confirmed there have been no delays in meeting schedules and they are on track to start trials in the second half of the year [30][31] Question: What is the current split between Medicare and commercial prescriptions? - The script volume is currently split relatively equally between Medicare and commercial prescriptions, with Medicare coverage acting as a significant growth driver [33][34] Question: What are the key drivers for repeat prescribing? - Key drivers include an expanded sales force and improved coverage, which have led to increased frequency of prescribing among doctors [38][40] Question: How is the feedback from the ORION Registry and MGD data being received? - Doctors are responding positively to the new data, which is prompting them to diagnose more patients and consider a broader range of conditions [54] Question: What are the potential factors affecting future guidance? - Factors include the impact of the DTC campaign and macroeconomic events, which may affect visibility for long-range guidance [63] Question: What is the expected level of stocking in the channel? - The company does not anticipate changes in stocking levels, which have remained consistent at around two to two and a half weeks [66]