Financial Performance - XDEMVY net sales for Q3 2025 were approximately $119 million, representing a year-over-year increase of approximately 147%[1] - Product sales for Q3 2025 reached $118.7 million, a significant increase of 146.5% compared to $48.1 million in Q3 2024[20] - Total revenues for the nine months ended September 30, 2025, were $299.7 million, up from $116.5 million in the same period of 2024, representing a growth of 156.5%[20] - Year-to-date product sales reached $299.7 million, compared to $113.7 million for the same period in 2024, driven by approximately 266,000 bottles of XDEMVY delivered[6] Expenses - Research and development (R&D) expenses for Q3 2025 were $16.3 million, up from $12.1 million in Q3 2024, primarily due to increased program expenses and personnel costs[6] - Selling, general and administrative (SG&A) expenses for Q3 2025 were $108.6 million, compared to $57.9 million in Q3 2024, driven by increased commercial and marketing costs[6] - Research and development expenses increased to $16.3 million in Q3 2025, compared to $12.1 million in Q3 2024, reflecting a rise of 34.5%[20] - Selling, general and administrative expenses surged to $108.6 million in Q3 2025, up from $57.9 million in Q3 2024, marking an increase of 87.5%[20] Net Loss - The net loss for Q3 2025 was $12.6 million, an improvement from a net loss of $23.4 million in Q3 2024[6] - The net loss for Q3 2025 was $12.6 million, an improvement from a net loss of $23.4 million in Q3 2024[20] Cash Position - As of September 30, 2025, Tarsus had a cash position of $401.8 million[6] - Cash and cash equivalents increased to $112.7 million as of September 30, 2025, compared to $94.8 million at the end of 2024, showing a growth of 18.5%[22] Assets and Liabilities - Total assets rose to $534.6 million as of September 30, 2025, up from $377.0 million at the end of 2024, indicating an increase of 42.0%[22] - Total liabilities increased to $199.5 million as of September 30, 2025, compared to $152.5 million at the end of 2024, reflecting a rise of 30.8%[22] - The accumulated deficit as of September 30, 2025, was $418.3 million, compared to $360.2 million at the end of 2024[22] Product Delivery - More than 103,000 bottles of XDEMVY were delivered to patients in Q3 2025, compared to over 41,400 bottles in the same period in 2024[6] Future Plans - Tarsus plans to initiate a Phase 2 study of TP-04 for ocular rosacea in December 2025, with topline data expected by year-end 2026[3] - Tarsus is also advancing TP-05, an oral tablet for the potential prevention of Lyme disease, with a planned study in 2026[3] Shares Outstanding - The weighted-average shares outstanding increased to 42.6 million in Q3 2025 from 38.4 million in Q3 2024[20]

Core Insights - Tarsus Pharmaceuticals reported strong financial results for Q3 2025, with net sales of XDEMVY reaching approximately $119 million, reflecting a year-over-year increase of about 147% [1][5] - The company is experiencing robust commercial momentum, evidenced by a 30% growth in weekly multi-patient prescribers during the third quarter [1][5] - Tarsus is expanding its pipeline with new programs aimed at addressing significant unmet needs in eye care, including a Phase 2 study for ocular rosacea [2][5] Financial Performance - Q3 2025 net product sales were $118.7 million, compared to $48.1 million in Q3 2024, driven by over 103,000 bottles of XDEMVY delivered to patients, up from 41,400 bottles in the prior year [5][11] - Cost of sales increased to $8.3 million from $3.2 million in the same period last year, attributed to manufacturing costs and royalties [5][11] - Research and development (R&D) expenses rose to $16.3 million from $12.1 million in Q3 2024, primarily due to increased program expenses and personnel costs [5][11] - Selling, general and administrative (SG&A) expenses surged to $108.6 million from $57.9 million, driven by higher payroll, marketing costs, and variable expenses [6][11] Market Position and Strategy - XDEMVY has established itself as one of the best-selling prescription eye drops, fundamentally changing how eye care professionals diagnose and treat Demodex blepharitis [2][5] - The company has achieved broad coverage, with over 90% of commercial, Medicare, and Medicaid lives covered, resulting in a gross-to-net discount of 44.7% [5] - Tarsus is advancing its category-creation strategy with plans to initiate clinical studies for TP-04 and TP-05, targeting ocular rosacea and Lyme disease prevention, respectively [5][11] Operational Highlights - The number of eye care professionals (ECPs) prescribing more than one bottle of XDEMVY per week increased by approximately 30% compared to Q2 2025, indicating growing confidence in the product [5] - Tarsus has delivered over 266,000 bottles of XDEMVY year-to-date, compared to 104,400 bottles in the same period last year [11] - The company reported a net loss of $12.6 million for Q3 2025, an improvement from a net loss of $23.4 million in Q3 2024 [11]

Core Viewpoint - Tarsus Pharmaceuticals, Inc. is set to report its third quarter 2025 financial results and provide a corporate update through a live webcast on November 4, 2025 [1] Company Overview - Tarsus Pharmaceuticals, Inc. focuses on revolutionizing treatment for patients, particularly in eye care, by applying proven science and new technology [2] - The company is advancing its pipeline to address diseases with high unmet needs across various therapeutic categories, including eye care and infectious disease prevention [2] - XDEMVY® (lotilaner ophthalmic solution) 0.25% is FDA approved for treating Demodex blepharitis in the United States [2] - Tarsus is developing TP-04 as an ophthalmic gel for potential treatment of Ocular Rosacea and TP-05 as an oral tablet for potential prevention of Lyme disease, both currently in Phase 2 [2]

Core Insights - The article highlights stocks reaching new 52-week highs, indicating market recognition of strong fundamentals and potential catalysts for growth [1][2]. Company Summaries Cogent Biosciences Inc. (COGT) - Cogent Biosciences plans to file its first New Drug Application for Bezuclastinib by the end of 2025, targeting non-advanced systemic mastocytosis [3]. - A phase III trial comparing Bezuclastinib with Sutent is ongoing, with results expected in the second half of 2025 [4]. - The stock reached a 52-week high of $16.99, up from $7.25 when last featured [5]. Assembly Biosciences Inc. (ASMB) - Assembly Biosciences is advancing four key development programs, with ABI-5366 expected to enter phase 2 studies in mid-2026 [6]. - Interim data for ABI-1179 is anticipated this fall, while ABI-6250 is in a phase 1a trial [7]. - The stock hit a 52-week high of $28, up from $14.53 when last featured [8]. Compass Therapeutics Inc. (CMPX) - Compass Therapeutics is conducting a phase 2/3 study of Tovecimig for advanced biliary tract cancer, with analyses of secondary endpoints expected in Q1 2026 [9][10]. - The stock reached a 52-week high of $4.39, up from $2.91 when last featured [11]. NewAmsterdam Pharma Company N.V. (NAMS) - NewAmsterdam Pharma is developing Obicetrapib as a cholesterol-lowering therapy, with positive data from the BROADWAY trial [12][13]. - The company has completed two additional phase III trials and submitted marketing applications to the EMA [16]. - The stock reached a 52-week high of $39.76, up from $21.56 when last featured [17]. Mineralys Therapeutics Inc. (MLYS) - Mineralys is developing Lorundrostat for uncontrolled hypertension, with a pivotal phase III trial achieving its primary endpoint [19]. - A phase II trial for overweight participants with OSA is ongoing, with topline results expected in 1H 2026 [20]. - The stock hit a 52-week high of $43.88, up from $10.34 when last featured [20]. Kymera Therapeutics Inc. (KYMR) - Kymera is set to report data from its phase I trial of KT-621 this quarter, with phase 2b studies planned for late 2025 and early 2026 [21][22]. - The stock reached a 52-week high of $60, up from $40 when last featured [22]. Insmed Inc. (INSM) - Insmed has two approved drugs and is conducting a phase 3 trial of Arikayce, with topline results expected in 1H 2026 [24][25]. - The stock hit a high of $166.54, up from $76.54 when last featured [26]. Adaptive Biotechnologies Corp. (ADPT) - Adaptive Biotechnologies expects MRD revenue between $190 million and $200 million for 2025, up from $145.5 million in 2024 [28][29]. - The stock reached a 52-week high of $15.94, up from $9.80 when last featured [29]. BridgeBio Pharma Inc. (BBIO) - BridgeBio has upcoming topline results from the FORTIFY and CALIBRATE studies expected in Fall 2025 [30]. - The stock reached a 3-year high of $56.24, up from $25.10 when last featured [31]. Tarsus Pharmaceuticals Inc. (TARS) - Tarsus reported strong sales for Xdemvy, with Q2 2025 sales of $102.7 million, compared to $40.8 million in Q2 2024 [32]. - The stock hit an all-time high of $70.15, up from $25.01 when last featured [34]. Palvella Therapeutics Inc. (PVLA) - Palvella's QTORIN is under development for various skin diseases, with a phase 2 trial expected to report data in mid-December 2025 [35][36]. - The stock reached a 52-week high of $76.76, up from $25 when last featured [36]. Merus N.V. (MRUS) - Merus agreed to be acquired by Genmab for $97 per share, with the deal expected to close in early Q1 2026 [37]. - The stock was at $39.71 when last featured [39]. Nephros Inc. (NEPH) - Nephros reported net revenue of $4.4 million for Q2 2025, marking its third consecutive quarter of profitability [40][41]. - The stock hit a 52-week high of $5.98, up from $2.93 when last featured [42].

Core Insights - Tarsus Pharmaceuticals, Inc. (TARS) shares experienced a significant increase of 10.9%, closing at $65.17, with trading volume surpassing the average [1] - The rise in stock price is linked to positive investor sentiment regarding the strong market performance of Tarsus' product, Xdemvy, which generated $181 million in sales in the first half of 2025, indicating a substantial year-over-year growth [2] Company Performance - Tarsus Pharmaceuticals is projected to report a quarterly loss of $0.38 per share, reflecting a year-over-year increase of 37.7%, while revenues are expected to reach $112.8 million, marking a 134.4% increase from the previous year [3] - The consensus EPS estimate for Tarsus has remained stable over the last 30 days, suggesting that stock price movements may not sustain without changes in earnings estimates [4] Industry Context - Tarsus Pharmaceuticals operates within the Zacks Medical - Biomedical and Genetics industry, where another company, Arcutis Biotherapeutics, Inc. (ARQT), saw a decline of 6.3% in its stock price, despite a 31.1% return over the past month [4] - Arcutis Biotherapeutics has an unchanged EPS estimate of -$0.09 for its upcoming report, which represents a 72.7% improvement from the previous year [5]

Group 1 - Tarsus Pharmaceuticals has successfully launched Xdemvy (lotilaner) for Demodex blepharitis, achieving sales exceeding $100 million per quarter [1] - The company's selling, general, and administrative expenses (SG&A) have also increased alongside sales [1] - The company is pursuing a "Get Big Fast" strategy, which was previously rated as a buy in May [1] Group 2 - The article reflects the author's personal opinions and does not constitute investment advice [2] - The author holds a beneficial long position in Tarsus Pharmaceuticals through stock ownership or derivatives [2]

Group 1 - Tarsus Pharmaceuticals has successfully launched Xdemvy (lotilaner) for Demodex blepharitis, achieving sales exceeding $100 million per quarter [1] - The company's selling, general, and administrative expenses (SG&A) have also increased alongside sales [1] - The company is following a "Get Big Fast" strategy, which was previously rated as a buy [1]

Financial Data and Key Metrics Changes - The company reported net revenues of $102.7 million for the last quarter, indicating strong growth since the launch of XDEMVY [2][3] - Guidance for Q3 suggests distribution of 95,000 to 100,000 bottles, reflecting continued market penetration [1][2] - Gross-to-net is expected to decrease to 43% to 45% for Q3, with a target of low 40% by year-end, indicating improved pricing strategies [7][8] Business Line Data and Key Metrics Changes - Over 20,000 eye doctors have prescribed XDEMVY, exceeding initial targets and demonstrating effective market education [3][12] - The company has achieved over 90% insurance coverage for XDEMVY, which is significantly above average in the industry [10][11] Market Data and Key Metrics Changes - The total addressable market (TAM) for Demodex blepharitis is approximately 25 million Americans, with 9 million actively seeking treatment [18][29] - The company anticipates that the TAM could expand as more patients become aware of the treatment options available [18][19] Company Strategy and Development Direction - The company is focused on deepening prescriber engagement and expanding the use cases for XDEMVY among various patient types [4][14] - Plans for international expansion include market entry strategies for Europe and Japan, with a focus on physician education and market development [23][24] Management's Comments on Operating Environment and Future Outlook - Management noted that Q3 typically experiences slower growth due to seasonal factors, but expects robust growth in Q4 as patient visits increase [5][6] - The company is optimistic about maintaining high insurance coverage levels and continuing to grow prescriber engagement [10][11] Other Important Information - The direct-to-consumer (DTC) campaign has been effective in driving awareness and demand, with expectations for continued ROI improvement [16][17] - The company is preparing for the initiation of phase 2 trials for ocular rosacea and Lyme disease prevention, indicating a strong pipeline for future growth [26][31] Q&A Session Summary Question: How should we think about seasonal trends on a go-forward basis? - Management explained that seasonal trends are influenced by market dynamics, with Q4 expected to be stronger due to increased patient flow [5] Question: Could you talk through some of the levers to lower gross-to-net? - Management indicated that gross-to-net discounts typically decrease as patients work through their deductibles, leading to lower discount rates over time [7] Question: What is the expected inventory level moving forward? - The company aims to maintain inventory levels around 2.5 weeks, which is considered optimal for managing demand [9] Question: How do you see the DTC campaign evolving in the next 12 months? - Management expressed confidence in the DTC campaign's effectiveness and expects continued growth in patient engagement and prescriber depth [16] Question: What is the market potential for ocular rosacea? - The market for ocular rosacea is estimated to be 15 to 18 million affected individuals, with significant opportunities for treatment [29]

Financial Data and Key Metrics Changes - The company reported net revenues of $102.7 million for the last quarter, indicating strong growth since the launch of XDEMVY [2][3] - Guidance for Q3 suggests distribution of 95,000 to 100,000 bottles, reflecting a steady cadence of growth despite seasonal dynamics [1][5] - Gross-to-net is expected to decrease to 43% to 45% for Q3, with a target of low 40% by year-end, driven by reduced discounts as patients progress through deductibles [8][9] Business Line Data and Key Metrics Changes - Over 20,000 eye doctors have prescribed XDEMVY, exceeding the initial target of 15,000, showcasing effective market education and engagement [14][15] - The company has achieved over 90% insurance coverage for XDEMVY, which is significantly above the industry average [11][12] Market Data and Key Metrics Changes - The total addressable market (TAM) for Demodex blepharitis is approximately 25 million Americans, with 9 million actively seeking treatment [21][22] - The company anticipates that the TAM could expand as more patients become aware of the treatment options available [21][22] Company Strategy and Development Direction - The company is focused on deepening prescribing patterns among existing prescribers and expanding the use cases for XDEMVY [15][16] - Plans for international expansion include market entry strategies for Europe and Japan, with a focus on physician education and market development [27][29] Management's Comments on Operating Environment and Future Outlook - Management noted that Q4 is expected to be a robust growth quarter as patient visits typically increase post-summer [5][6] - The company is optimistic about maintaining high insurance coverage levels and continuing to grow the prescriber base [11][12] Other Important Information - The company is preparing for the initiation of a phase 2 trial for TP-04 in ocular rosacea, with a focus on specific clinical endpoints [30][31] - The company is also exploring opportunities in Lyme disease prevention with TP-05, which is seen as a complementary program to its eye care focus [35][36] Q&A Session Summary Question: How should we think about seasonal trends on a go-forward basis? - Management explained that seasonal dynamics affect patient flow, with Q4 expected to show robust growth due to increased doctor visits post-summer [5][6] Question: Can you discuss the guidance on gross-to-net? - Management detailed that gross-to-net is expected to decrease as discounts reduce over time, with Q1 typically being the highest discount quarter [8][9] Question: What is the potential for expanding the prescriber base? - Management indicated that while the prescriber base has reached 20,000, the focus will now be on increasing the depth of prescribing among existing prescribers [14][15] Question: What are the expectations for the DTC campaign? - Management expressed confidence in the DTC campaign's effectiveness, anticipating continued growth in awareness and patient engagement [18][19] Question: What is the market potential for ocular rosacea? - Management noted that ocular rosacea affects 15 to 18 million individuals, with significant opportunities for treatment as awareness grows [33][34]

Financial Data and Key Metrics Changes - The company reported net revenues of $102.7 million for the last quarter, indicating strong growth since the launch of XDEMVY [2][3] - Guidance for Q3 suggests distribution of 95,000 to 100,000 bottles, reflecting a steady cadence of growth despite seasonal dynamics [1][5] - Gross-to-net is expected to decrease to 43% to 45% for Q3, with a target of low 40% by year-end, driven by reduced discounts as patients progress through deductibles [8][9] Business Line Data and Key Metrics Changes - Over 20,000 eye doctors have prescribed XDEMVY, exceeding the initial target of 15,000, showcasing effective market education and engagement [14][15] - The company has achieved over 90% insurance coverage for XDEMVY, which is significantly above the industry average [11][12] Market Data and Key Metrics Changes - The total addressable market (TAM) for Demodex blepharitis is approximately 25 million Americans, with 9 million actively seeking treatment, indicating substantial growth potential [21][22] - The company anticipates that the TAM could expand as more patients become aware of the treatment options available [21][22] Company Strategy and Development Direction - The company is focused on deepening prescriber engagement and expanding the utilization of XDEMVY across various patient types, including those with dry eye disease and meibomian gland disease [16][17] - Plans for international expansion include market entry strategies for Europe and Japan, with a focus on physician education and market development [27][29] Management's Comments on Operating Environment and Future Outlook - Management noted that Q3 typically experiences slower growth due to seasonal factors, but expects Q4 to be robust as patient visits increase post-summer [5][6] - The company is optimistic about maintaining high insurance coverage levels and continuing to grow prescriber engagement [11][12] Other Important Information - The company is preparing for the initiation of a phase 2 trial for TP-04 in ocular rosacea, with a focus on specific clinical endpoints [30][31] - The company is also exploring opportunities in Lyme disease prevention with TP-05, which is seen as a complementary program to its eye care focus [35][36] Q&A Session Summary Question: How should we think about seasonal trends on a go-forward basis? - Management explained that seasonal dynamics affect patient flow, with Q3 typically slower due to vacations, but expects robust growth in Q4 [5][6] Question: Can you discuss the guidance on gross-to-net? - Management detailed that gross-to-net discounts are expected to decrease as patients move through their deductibles, with a steady state anticipated in the low 40% range [8][9] Question: What is the potential for expanding the prescriber base? - Management indicated that while the prescriber base has reached 20,000, the focus will now be on increasing the depth of prescribing among existing prescribers [14][15] Question: What are the expectations for the DTC campaign? - Management expressed confidence in the DTC campaign's effectiveness, anticipating continued growth in patient awareness and engagement [18][19] Question: What is the market potential for ocular rosacea? - Management noted that ocular rosacea affects 15 to 18 million individuals, with significant opportunities for treatment as awareness grows [33][34]