Financial Data and Key Metrics Changes - U.S. net product revenue for neffy reached $31.3 million in Q3 2025, a 2.5-fold increase from the prior quarter, exceeding consensus expectations of $28.3 million [3][20] - Total revenue for Q3 2025 was $32.5 million, with $1.1 million recognized in supply revenue and $0.1 million in royalties [20][21] - Net loss for Q3 2025 was $51.2 million or $0.52 per share [23] Business Line Data and Key Metrics Changes - The U.S. net product revenue from neffy was $31.3 million, reflecting strong growth in new patient starts and overall demand [3][20] - Gross-to-net retention improved, with cash prescriptions decreasing from about 20% to approximately 12% of total volume [13][21] - Approximately 19% of neffy patients were lapsed patients who had stopped filling prescriptions, indicating a new patient segment being reached [18] Market Data and Key Metrics Changes - Consumer awareness of neffy increased from 20% pre-campaign to 56% as of September 2025 [14] - The current U.S. epinephrine market is valued at $2 billion annually, growing at 6-8% organically prior to neffy's entry [18] - Market share among new prescribers reached 10.3%, indicating faster uptake compared to existing prescribers [17] Company Strategy and Development Direction - The company is focused on sustaining and accelerating neffy U.S. market share growth and enabling global expansion through multiple launches [25] - The "Get neffy on Us" program aims to simplify access to neffy and drive year-round sales growth [8][16] - The company plans to invest in direct-to-consumer initiatives and real-world evidence generation to support neffy's effectiveness [23][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a temporary pause in market share growth due to back-to-school seasonality but expects growth to resume in Q4 2025 [6][7] - The company anticipates Q4 sales will decrease from Q3 due to typical seasonality in the epinephrine market [7][19] - Management expressed confidence in the long-term growth and profitability of neffy, supported by a strong balance sheet and cash position [11][24] Other Important Information - The company secured a term loan facility of up to $250 million, drawing down $100 million initially to accelerate commercial growth [11][23] - Neffy received approval in Japan in September 2025, with launches anticipated in Canada and China in 2026 [10] Q&A Session Summary Question: How did Q3 performance stack up against internal expectations? - Management indicated that Q3 performance exceeded analysts' expectations and met internal expectations, despite challenges faced during the summer [32] Question: What is the market share growth among new prescribers? - New prescribers are trialing neffy, and while their market share is increasing, existing prescribers are also expanding their use [37] Question: What percentage of covered lives require prior authorization? - Approximately 50% of prescriptions require prior authorization, with 57% of commercial prescriptions not requiring it [46] Question: What are the inventory levels for neffy? - Distributors maintain inventory levels between 15-20 days, which may fluctuate based on market demand [49] Question: How is the virtual prescriber program expected to impact growth? - The virtual prescriber program is anticipated to streamline the prescription process, making it easier for patients to access neffy and potentially increasing adoption [70]

Financial Data and Key Metrics Changes - In Q2 2025, Tarsus Pharmaceuticals achieved record net sales exceeding $100 million, specifically $102.7 million, marking a significant milestone for the company [5][14] - The company dispensed approximately 91,000 bottles to patients, slightly above the guidance of 90,000 bottles [14] - The gross to net discount for Q2 was approximately 45%, with expectations to improve to the low 40s by year-end 2025 [15][17] - Cash and cash equivalents at the end of the quarter were approximately $381 million [15] Business Line Data and Key Metrics Changes - Xtendi, the company's primary product, is primarily a new prescription (NRx) business, with over 30% sequential quarterly revenue growth [8][9] - The direct-to-consumer (DTC) campaign has significantly increased prescription volumes, with unaided awareness of Xtendi tripling since the campaign began [10][11] - The number of prescribers has grown to over 20,000, with a notable increase in weekly prescriptions among the core audience [11][12] Market Data and Key Metrics Changes - The DTC campaign has opened new conversations and changed physician behavior, contributing to a growing prescriber base and increasing patient demand [6][9] - Approximately 25 million people in the U.S. are estimated to have Demodex blepharitis, indicating a substantial market opportunity [6] Company Strategy and Development Direction - The company aims to create and lead new categories in eye care, with a focus on expanding the role of Xtendi and advancing the TPO4 program for ocular rosacea [7][19] - Tarsus is committed to scientific innovation and flawless execution, positioning itself to lead in high-impact underserved diseases [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of Xtendi, with expectations for continued success driven by the DTC campaign and a motivated sales force [15][17] - The company anticipates a steady growth trajectory, with no expectation of a "hockey stick" growth pattern but rather a consistent build in market presence [39][48] Other Important Information - The company plans to initiate a Phase II study for ocular rosacea later in 2025, with preparations already underway [18][84] - Regulatory meetings in Japan are on track for the second half of 2025, and potential European regulatory approval for a preservative-free formulation of Xtendi is expected in 2027 [18] Q&A Session Summary Question: Can you talk about the increase in new prescribers? - The increase in prescribers is primarily from the targeted core audience of 15,000, with no erosion in the earlier prescriber base, and the DTC campaign has opened up a broader prescribing funnel [22][24][26] Question: What are the plans for the gross to net discount in 2026 and beyond? - The expectation is to maintain a steady state in the low 40s for gross to net discount, with ongoing efforts to improve that in the current payer environment [30][31] Question: How do you see the cadence of the launch progressing? - The launch is expected to continue steadily, with a strong foundation for growth and a significant untapped market potential remaining [36][39] Question: What is the impact of the DTC campaign? - The DTC campaign has shown early measurable impact, contributing significantly to prescription volumes and consumer awareness [9][66] Question: Can you provide updates on the ocular rosacea program? - The Phase II study for ocular rosacea is on track to start in 2025, with preparations well underway [83][84]