Summary of Tarsus Pharmaceuticals FY Conference Call Company Overview - **Company**: Tarsus Pharmaceuticals (NasdaqGS:TARS) - **Core Product**: XDEMVY for Demodex blepharitis - **Pipeline**: Includes treatments for ocular rosacea and a potential prophylactic for Lyme disease Financial Performance - **Q3 Revenue**: Approximately $119 million, with 103,000 bottles dispensed [2][3] - **Q4 Guidance**: Expected revenue between $140-$145 million, leading to total annual revenue of $440-$445 million for the year [3][20] - **DTC Campaign**: Successfully driving growth, with over 90% payer coverage achieved [5][11] Market Dynamics - **Sales Strategy**: Focus on educating eye care professionals (ECPs) about identifying Demodex blepharitis in patients, including those who are asymptomatic [4][5] - **Physician Engagement**: Over 20,000 ECPs have prescribed XDEMVY, with efforts to convert occasional prescribers into regular ones [7][8] - **Payer Relations**: Strong initial education efforts have led to good payer coverage, with no anticipated pushback from payers [11][20] Product Insights - **Efficacy**: 85% of patients reported clinically meaningful benefits from XDEMVY [9] - **Retreatment Rates**: Expected baseline retreatment rate of 20%, with current mid-teen rates observed in older cohorts [17][18] - **Seasonality**: Anticipated fluctuations in prescription volumes due to holidays and office closures [25] Future Outlook - **Ocular Rosacea Program**: Phase two study expected to start by the end of 2025, with top-line data anticipated in the second half of 2026 [46][48] - **Lyme Disease Program**: Oral prophylactic treatment showing promise, with a tick kill study indicating 98% efficacy [56][57] - **Financial Position**: Well-capitalized with approximately $400 million available for future investments and potential partnerships [59] Strategic Considerations - **Guidance Changes**: Transitioning to revenue guidance for 2026 based on improved understanding of market dynamics and DTC impact [32][33] - **Sales Force Utilization**: Plans to leverage the existing sales force for potential new products and partnerships in the future [60] Additional Notes - **Market Education**: Continuous efforts to educate both physicians and patients about Demodex blepharitis and ocular rosacea are crucial for driving adoption [39][51] - **Regulatory Feedback**: Positive feedback from the FDA regarding endpoints for ocular rosacea studies, focusing on patient-reported outcomes [41][42]