Second Quarter 2025 Financial Results Conference Call August 6, 2025 Matt, an XDEMVY® Patient Today's Speakers Bobby Azamian, MD, PhD CEO & Chairman Aziz Mottiwala Chief Commercial Officer Jeff Farrow Chief Financial & Strategy Officer 2 | © Tarsus Pharmaceuticals | For Investor Purposes Only Forward-Looking Statements This presentation contains forward-looking statements that involve risks and uncertainties. These statements and the most recent Form 10-Q quarterly filing filed with the SEC include statemen ...

Core Insights - Tarsus Pharmaceuticals reported record quarterly net product sales of $102.7 million for Q2 2025, marking a 152% increase year over year, driven by the successful launch of XDEMVY [1][5] - The Direct-To-Consumer campaign has significantly increased patient engagement and prescriptions, with active consumer engagement on the XDEMVY website up nearly 400% since the start of 2025 [5] - The company is on track with its pipeline advancements and global expansion efforts, including plans for regulatory meetings in Japan and potential European approval for a preservative-free formulation of XDEMVY [5][10] Recent Business and Clinical Highlights - XDEMVY has established itself as the standard of care for Demodex blepharitis, with over 91,000 bottles distributed in Q2 2025 [2][5] - More than 20,000 Eye Care Professionals (ECPs) are now prescribing XDEMVY, a 30% increase since the beginning of 2025 [5] - The company plans to initiate a Phase 2 study of TP-04 for ocular rosacea in H2 2025 and a Phase 2 study of TP-05 for Lyme disease prevention in 2026 [5] Financial Results - For Q2 2025, product sales were $102.7 million compared to $40.8 million in Q2 2024, with a total of approximately 91,000 bottles delivered [5][10] - Cost of sales increased to $6.2 million from $3.0 million in the same period last year, primarily due to manufacturing costs related to XDEMVY [10] - Research and development expenses rose to $15.6 million from $12.3 million in Q2 2024, driven by increased program expenses and personnel-related costs [6][10] Year-to-Date Financial Performance - Year-to-date product sales reached $181.0 million, up from $65.5 million in the same period in 2024 [10] - Selling, general and administrative expenses increased to $188.0 million from $110.4 million, largely due to higher commercial and marketing costs associated with the XDEMVY launch [10] - The net loss for the year-to-date period was $45.5 million, an improvement from a net loss of $69.0 million in the same period in 2024 [10]

Let's go over just three ways to protect your eyes within the digital environment. Before you get ready to work, prepare your workspace. You'll want to eliminate glare from your digital device by moving the lighting around your workstation.Enhance the contrast on your screen by changing the illumination. Set the digital device in a downward gaze. The second step is perform.While you're working, take a few breaks to blink your eyes. Blinking will spread the tears across and keep them moist. And third is pres ...

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.

Financial Data and Key Metrics Changes - In 2024, Tarsus Pharmaceuticals reported net product sales of over $180 million, with Q4 sales reaching $66.4 million [5][21] - The company dispensed more than 163,000 bottles of Xtendvy throughout the year, with Q4 dispensing exceeding 58,500 bottles [21] - Gross margins were approximately 93%, with total operating expenses around $303.5 million, primarily due to commercial and marketing costs related to the launch of Xtendvy [21][22] Business Line Data and Key Metrics Changes - Xtendvy has seen significant adoption, with over 15,000 eye care physicians now prescribing the product, and the sales force expanded from 100 to 150 representatives [6][12] - The company achieved over 90% commercial and Medicare coverage for Xtendvy, facilitating easier access for patients [12][21] Market Data and Key Metrics Changes - The market for deminex blepharitis (DB) is substantial, with millions of Americans potentially benefiting from Xtendvy [5][6] - The company is also targeting ocular rosacea, which affects approximately 15 to 18 million Americans, indicating a large and underserved market [18] Company Strategy and Development Direction - Tarsus aims to establish itself as a leader in eye care by advancing a robust pipeline of therapeutics, including ocular rosacea and Lyme disease prevention programs [5][10][18] - The company plans to initiate a Phase 2 trial for TP04 (ocular rosacea) later in the year and a Phase 2 study for TPO5 (Lyme disease prevention) in 2026 [10][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for 2025, driven by expanded sales efforts and a direct-to-consumer advertising campaign [11][21] - The company anticipates that growth will not be linear, with modest growth expected in the first and third quarters and stronger growth in the second and fourth quarters [23] Other Important Information - The direct-to-consumer advertising campaign has been expanded to major network television events, generating positive responses from both eye care physicians and patients [14][15] - The company is preparing for increased operating expenses in 2025 due to ongoing marketing efforts and clinical trials [24] Q&A Session Summary Question: How to motivate prescribers to increase prescribing frequency? - Management highlighted four key drivers: sales force expansion, increased coverage, direct-to-consumer campaigns, and compelling MGD data [30][32] Question: What medical conferences are important for Tarsus? - Key conferences include the Academy of Ophthalmology and the ASCRS conference, which provide platforms to engage with physicians [37] Question: What is the anticipated duration of the DTC campaign? - The campaign aims to educate consumers over time, with ongoing adjustments based on metrics and ROI [98] Question: How does the company view the potential for Lyme disease prevention? - The company sees a clear regulatory path for TPO5 and plans to initiate a Phase 2 study in 2026, with a focus on partnering for larger trials [19][52] Question: What is the expected impact of the DTC campaign on new patient starts? - Management noted a correlation between website engagement metrics and prescription rates, indicating a delayed impact as patients take time to respond [90][92]