Tarsus Pharmaceuticals & SpringWorks Therapeutics: Jonathan Faison's Top 2 Picks

Core Insights - Jonathan Faison highlights Tarsus Pharmaceuticals and SpringWorks Therapeutics as key investment opportunities in the biotech sector, with Tarsus's XDEMVY showing strong performance and SpringWorks's Ogsiveo gaining traction in the market [1][2] Tarsus Pharmaceuticals - Tarsus Pharmaceuticals has a market cap of $1.8 billion and an enterprise value of approximately$1.5 billion, with a valuation of 1x to 1.5x peak sales [2] - The lead drug, XDEMVY, targets Demodex blepharitis and has seen a price increase from $15 to the mid-$40s, indicating strong market performance [1][2] SpringWorks Therapeutics - SpringWorks Therapeutics is currently the number one holding in the portfolio, representing around 13% of it, with Ogsiveo launched for desmoid tumors [2] - Ogsiveo has achieved a 70% market share for new prescriptions in its category and is projected to have an annualized run rate of $200 million to$250 million, with only 10% market penetration so far [2] - The company anticipates three launches next year, including the European Union launch for Ogsiveo and the U.S. launch for Mirdametinib, which has a priority review with a PDUFA date in February [2] Market Dynamics - Over 90% of doctors have indicated they will use Ogsiveo again, with 90% stating they will use it as a frontline treatment [2] - The addressable market for Ogsiveo is larger than previously anticipated, strengthening the investment thesis for SpringWorks Therapeutics [2] - The competitive landscape includes AstraZeneca's Koselugo, which is currently approved only for pediatric indications, presenting an opportunity for SpringWorks to capture a larger market share [2]