Financial Data and Key Metrics Changes - In 2025, Tarsus Pharmaceuticals achieved over $450 million in full-year net sales, with Q4 net product sales reaching $151.7 million at a gross-to-net discount of 44% [4][22] - Total operating expenses for 2025 were $522.3 million, primarily due to commercial investments for the XDEMVY launch [22] - The company ended 2025 with approximately $418 million in cash, cash equivalents, and marketable securities, providing financial flexibility for growth [22] Business Line Data and Key Metrics Changes - XDEMVY, the company's primary product, is now profitable and growing, with expectations of reaching blockbuster status with sales potential exceeding $2 billion [5][8] - The company has helped over 500,000 patients with Demodex blepharitis since the product's launch, indicating significant market penetration [4] - The company plans to add approximately 15-20 key account leaders in 2026 to enhance sales force effectiveness [10] Market Data and Key Metrics Changes - The U.S. market for Demodex blepharitis is estimated to have 25 million affected individuals, with significant growth potential as awareness and treatment options expand [8][9] - The company has achieved over 90% coverage across commercial Medicare and Medicaid, facilitating patient access [10] - Awareness of Demodex blepharitis and XDEMVY has increased from 2% to 25% among surveyed patients, reflecting successful marketing efforts [12] Company Strategy and Development Direction - Tarsus aims to build on the success of XDEMVY by identifying diseases with clear root causes and unmet needs, applying a proven development and commercial playbook [5][6] - The company plans to expand its pipeline with one to two new programs per year, focusing on ocular rosacea (TP-04) and Lyme disease prevention (TP-05) [6][18] - Tarsus is committed to becoming a leader in eye care by creating and leading new categories in the industry [7][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of XDEMVY, anticipating strong net product sales guidance for 2026 in the range of $670 million to $700 million [23] - The company expects typical first-quarter seasonality to impact growth, with a projected flat to slightly down revenue for Q1 2026 [24] - Management highlighted the importance of continued investment in direct-to-consumer campaigns and sales force to drive growth [11][49] Other Important Information - The company is advancing its clinical programs TP-04 and TP-05, with expected costs of $7 million-$10 million and $25 million-$30 million respectively for their trials [26][75] - Tarsus is also making progress with TP-03 for potential regulatory approval in Europe and Japan, with expectations for approval in China later this year [20] Q&A Session Summary Question: Can you provide more detail on expectations beyond Q1 for the $670 million-$700 million guidance? - Management indicated that Q1 is expected to be flat to slightly down due to typical seasonal dynamics, with a strong growth anticipated in Q2 [32][34] Question: What is driving the increased conviction for the $2 billion peak sales target? - Management noted that the growth is driven by a strong prescriber base and continued flawless execution across commercial efforts [42] Question: Can you elaborate on the DTC campaign and its ROI? - The DTC campaign has performed exceptionally well, achieving positive ROI earlier than expected, and management plans to maintain the $80 million spend level [46][48] Question: What are the expected costs for the pivotal studies for ocular rosacea and Lyme disease? - The ocular rosacea study is expected to cost between $7 million-$10 million, while the Lyme disease study is projected to cost $25 million-$30 million [75] Question: Can you discuss the prescribing trends between ophthalmologists and optometrists? - The prescribing dynamics show strong growth in both segments, with approximately two-thirds of prescriptions coming from optometrists [78]

Financial Performance - XDEMVY net sales reached $118.7 million in Q3 2025[30], representing a ~147% year-over-year growth[11, 30] - Over 103,000 XDEMVY bottles were delivered to patients in Q3 2025[30] - The gross-to-net discount was 44.7% in Q3 2025[30] - The company projects XDEMVY net product sales of approximately $140-$145 million for Q4 2025[32] and a gross-to-net discount of ~43-45%[33] - Full-year 2025 XDEMVY net product sales are projected to be approximately $440-$445 million[34] Market and Commercial Expansion - An estimated 25 million Americans are living with Demodex blepharitis (DB)[16] - Approximately 9 million patients are proactively seeking treatment for DB or complementary eye conditions/diseases[16] - Over 20,000 eye care professionals (ECPs) are prescribing XDEMVY[20] - There was a 20% quarter-over-quarter (QoQ) growth in ECPs prescribing XDEMVY once per week[20], and a 30% QoQ growth in ECPs prescribing XDEMVY more than once per week[20] Pipeline Development - The company plans to initiate a Phase 2 study for TP-04 (ocular rosacea) in Q4 2025[35] and a Phase 2 study for TP-05 (Lyme Disease prevention) in 2026[14, 35] - The company is on track for potential submission of XDEMVY in Europe in 2026[14, 35] and regulatory approval in 2027[35]