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]

Financial Data and Key Metrics Changes - In Q3 2025, Tarsus Pharmaceuticals reported approximately $119 million in net revenue, reflecting a significant increase from the previous quarter, with over 103,000 bottles of XDEMVY delivered to patients [3][10][15] - The company achieved a gross to net discount of 44.7%, consistent with previous guidance, driven by adjustments related to the Medicare Manufacturers Discount Program and an increase in Medicare patients entering the catastrophic coverage category [16][17] - For Q4, Tarsus expects net product sales for XDEMVY to be in the range of $140 million to $145 million, contributing to an annual revenue forecast of $440 million to $445 million [17][19] Business Line Data and Key Metrics Changes - XDEMVY has become one of the best-selling prescription eye drops, with over 20,000 doctors prescribing it, and a 20% increase in weekly prescribers noted [4][10][11] - The refill rate for prescriptions is showing positive trends, with over 10% of weekly prescriptions being refills, and expectations for this to stabilize around 20% over time [13][35] Market Data and Key Metrics Changes - The company is experiencing a positive trend in direct-to-consumer (DTC) engagement, with a 90% increase in website visits and a 42% growth in unaided awareness since the last quarter [12][60] - Tarsus is seeing strong adoption across multiple patient segments, particularly in the treatment of Demodex blepharitis, which is now recognized as a mainstream condition [13][14] Company Strategy and Development Direction - Tarsus aims to broaden its pipeline and expand globally, with plans to initiate a phase two trial for ocular rosacea by the end of the year and to advance its Lyme disease prevention program [8][18] - The company is focused on creating a market and shifting physician behavior to establish XDEMVY as a standard treatment in eye care [9][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing growth trajectory of XDEMVY, anticipating continued momentum into 2026 and beyond, with a clear path to achieving Blockbuster Plus potential [19][20] - The management team highlighted the importance of physician education and patient engagement in driving the adoption of XDEMVY [35][56] Other Important Information - Tarsus is evaluating strategic options for its pipeline programs, including potential partnerships to advance its Lyme disease program efficiently [18] - The company is also considering flexible commercial strategies for international markets, particularly in Europe and Japan [18][19] Q&A Session Summary Question: Changes in doctors' practice patterns regarding XDEMVY - Management noted a significant increase in the depth of prescribing, with a 20% rise in weekly prescribers and a 30% increase in those prescribing multiple times a week, driven by new data on meibomian gland disease [25][27][29] Question: Refill rates and patient return behavior - The company reported a positive trend in refill rates, with over 10% of weekly prescriptions being refills, and emphasized the importance of physician education on the chronic nature of the disease to encourage patient follow-ups [33][35] Question: Update on peak sales estimates for XDEMVY - Management indicated that while they are thrilled with current performance, they are not ready to quantify peak sales estimates but continue to believe in the Blockbuster Plus potential of XDEMVY [33][39] Question: Status of TP-04 study for ocular rosacea - The company confirmed that no further FDA meeting is needed before starting the TP-04 trial, which is on track to begin later this year [43][44] Question: Insights on operational spending for 2026 - Management expects operational expenses to align with 2025 levels, with a focus on DTC spending and potential costs associated with the ocular rosacea and Lyme disease programs [45][46] Question: Traction between optometrists and ophthalmologists - Tarsus sees a balanced mix of prescriptions from both optometrists and ophthalmologists, with approximately 65% of volume coming from optometry, and both groups are showing strong engagement with XDEMVY [75][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]

Core Insights - Tarsus Pharmaceuticals reported strong financial results for Q3 2025, with net sales of XDEMVY reaching approximately $119 million, reflecting a year-over-year increase of about 147% [1][5] - The company is experiencing robust commercial momentum, evidenced by a 30% growth in weekly multi-patient prescribers during the third quarter [1][5] - Tarsus is expanding its pipeline with new programs aimed at addressing significant unmet needs in eye care, including a Phase 2 study for ocular rosacea [2][5] Financial Performance - Q3 2025 net product sales were $118.7 million, compared to $48.1 million in Q3 2024, driven by over 103,000 bottles of XDEMVY delivered to patients, up from 41,400 bottles in the prior year [5][11] - Cost of sales increased to $8.3 million from $3.2 million in the same period last year, attributed to manufacturing costs and royalties [5][11] - Research and development (R&D) expenses rose to $16.3 million from $12.1 million in Q3 2024, primarily due to increased program expenses and personnel costs [5][11] - Selling, general and administrative (SG&A) expenses surged to $108.6 million from $57.9 million, driven by higher payroll, marketing costs, and variable expenses [6][11] Market Position and Strategy - XDEMVY has established itself as one of the best-selling prescription eye drops, fundamentally changing how eye care professionals diagnose and treat Demodex blepharitis [2][5] - The company has achieved broad coverage, with over 90% of commercial, Medicare, and Medicaid lives covered, resulting in a gross-to-net discount of 44.7% [5] - Tarsus is advancing its category-creation strategy with plans to initiate clinical studies for TP-04 and TP-05, targeting ocular rosacea and Lyme disease prevention, respectively [5][11] Operational Highlights - The number of eye care professionals (ECPs) prescribing more than one bottle of XDEMVY per week increased by approximately 30% compared to Q2 2025, indicating growing confidence in the product [5] - Tarsus has delivered over 266,000 bottles of XDEMVY year-to-date, compared to 104,400 bottles in the same period last year [11] - The company reported a net loss of $12.6 million for Q3 2025, an improvement from a net loss of $23.4 million in Q3 2024 [11]

Core Insights - The article highlights stocks reaching new 52-week highs, indicating market recognition of strong fundamentals and potential catalysts for growth [1][2]. Company Summaries Cogent Biosciences Inc. (COGT) - Cogent Biosciences plans to file its first New Drug Application for Bezuclastinib by the end of 2025, targeting non-advanced systemic mastocytosis [3]. - A phase III trial comparing Bezuclastinib with Sutent is ongoing, with results expected in the second half of 2025 [4]. - The stock reached a 52-week high of $16.99, up from $7.25 when last featured [5]. Assembly Biosciences Inc. (ASMB) - Assembly Biosciences is advancing four key development programs, with ABI-5366 expected to enter phase 2 studies in mid-2026 [6]. - Interim data for ABI-1179 is anticipated this fall, while ABI-6250 is in a phase 1a trial [7]. - The stock hit a 52-week high of $28, up from $14.53 when last featured [8]. Compass Therapeutics Inc. (CMPX) - Compass Therapeutics is conducting a phase 2/3 study of Tovecimig for advanced biliary tract cancer, with analyses of secondary endpoints expected in Q1 2026 [9][10]. - The stock reached a 52-week high of $4.39, up from $2.91 when last featured [11]. NewAmsterdam Pharma Company N.V. (NAMS) - NewAmsterdam Pharma is developing Obicetrapib as a cholesterol-lowering therapy, with positive data from the BROADWAY trial [12][13]. - The company has completed two additional phase III trials and submitted marketing applications to the EMA [16]. - The stock reached a 52-week high of $39.76, up from $21.56 when last featured [17]. Mineralys Therapeutics Inc. (MLYS) - Mineralys is developing Lorundrostat for uncontrolled hypertension, with a pivotal phase III trial achieving its primary endpoint [19]. - A phase II trial for overweight participants with OSA is ongoing, with topline results expected in 1H 2026 [20]. - The stock hit a 52-week high of $43.88, up from $10.34 when last featured [20]. Kymera Therapeutics Inc. (KYMR) - Kymera is set to report data from its phase I trial of KT-621 this quarter, with phase 2b studies planned for late 2025 and early 2026 [21][22]. - The stock reached a 52-week high of $60, up from $40 when last featured [22]. Insmed Inc. (INSM) - Insmed has two approved drugs and is conducting a phase 3 trial of Arikayce, with topline results expected in 1H 2026 [24][25]. - The stock hit a high of $166.54, up from $76.54 when last featured [26]. Adaptive Biotechnologies Corp. (ADPT) - Adaptive Biotechnologies expects MRD revenue between $190 million and $200 million for 2025, up from $145.5 million in 2024 [28][29]. - The stock reached a 52-week high of $15.94, up from $9.80 when last featured [29]. BridgeBio Pharma Inc. (BBIO) - BridgeBio has upcoming topline results from the FORTIFY and CALIBRATE studies expected in Fall 2025 [30]. - The stock reached a 3-year high of $56.24, up from $25.10 when last featured [31]. Tarsus Pharmaceuticals Inc. (TARS) - Tarsus reported strong sales for Xdemvy, with Q2 2025 sales of $102.7 million, compared to $40.8 million in Q2 2024 [32]. - The stock hit an all-time high of $70.15, up from $25.01 when last featured [34]. Palvella Therapeutics Inc. (PVLA) - Palvella's QTORIN is under development for various skin diseases, with a phase 2 trial expected to report data in mid-December 2025 [35][36]. - The stock reached a 52-week high of $76.76, up from $25 when last featured [36]. Merus N.V. (MRUS) - Merus agreed to be acquired by Genmab for $97 per share, with the deal expected to close in early Q1 2026 [37]. - The stock was at $39.71 when last featured [39]. Nephros Inc. (NEPH) - Nephros reported net revenue of $4.4 million for Q2 2025, marking its third consecutive quarter of profitability [40][41]. - The stock hit a 52-week high of $5.98, up from $2.93 when last featured [42].

Financial Data and Key Metrics Changes - The company reported net revenues of $102.7 million for the last quarter, indicating strong growth since the launch of XDEMVY [2][3] - Guidance for Q3 suggests distribution of 95,000 to 100,000 bottles, reflecting continued market penetration [1][2] - Gross-to-net is expected to decrease to 43% to 45% for Q3, with a target of low 40% by year-end, indicating improved pricing strategies [7][8] Business Line Data and Key Metrics Changes - Over 20,000 eye doctors have prescribed XDEMVY, exceeding initial targets and demonstrating effective market education [3][12] - The company has achieved over 90% insurance coverage for XDEMVY, which is significantly above average in the industry [10][11] Market Data and Key Metrics Changes - The total addressable market (TAM) for Demodex blepharitis is approximately 25 million Americans, with 9 million actively seeking treatment [18][29] - The company anticipates that the TAM could expand as more patients become aware of the treatment options available [18][19] Company Strategy and Development Direction - The company is focused on deepening prescriber engagement and expanding the use cases for XDEMVY among various patient types [4][14] - Plans for international expansion include market entry strategies for Europe and Japan, with a focus on physician education and market development [23][24] Management's Comments on Operating Environment and Future Outlook - Management noted that Q3 typically experiences slower growth due to seasonal factors, but expects robust growth in Q4 as patient visits increase [5][6] - The company is optimistic about maintaining high insurance coverage levels and continuing to grow prescriber engagement [10][11] Other Important Information - The direct-to-consumer (DTC) campaign has been effective in driving awareness and demand, with expectations for continued ROI improvement [16][17] - The company is preparing for the initiation of phase 2 trials for ocular rosacea and Lyme disease prevention, indicating a strong pipeline for future growth [26][31] Q&A Session Summary Question: How should we think about seasonal trends on a go-forward basis? - Management explained that seasonal trends are influenced by market dynamics, with Q4 expected to be stronger due to increased patient flow [5] Question: Could you talk through some of the levers to lower gross-to-net? - Management indicated that gross-to-net discounts typically decrease as patients work through their deductibles, leading to lower discount rates over time [7] Question: What is the expected inventory level moving forward? - The company aims to maintain inventory levels around 2.5 weeks, which is considered optimal for managing demand [9] Question: How do you see the DTC campaign evolving in the next 12 months? - Management expressed confidence in the DTC campaign's effectiveness and expects continued growth in patient engagement and prescriber depth [16] Question: What is the market potential for ocular rosacea? - The market for ocular rosacea is estimated to be 15 to 18 million affected individuals, with significant opportunities for treatment [29]

Financial Data and Key Metrics Changes - The company reported net revenues of $102.7 million for the last quarter, indicating strong growth since the launch of XDEMVY [2][3] - Guidance for Q3 suggests distribution of 95,000 to 100,000 bottles, reflecting a steady cadence of growth despite seasonal dynamics [1][5] - Gross-to-net is expected to decrease to 43% to 45% for Q3, with a target of low 40% by year-end, driven by reduced discounts as patients progress through deductibles [8][9] Business Line Data and Key Metrics Changes - Over 20,000 eye doctors have prescribed XDEMVY, exceeding the initial target of 15,000, showcasing effective market education and engagement [14][15] - The company has achieved over 90% insurance coverage for XDEMVY, which is significantly above the industry average [11][12] Market Data and Key Metrics Changes - The total addressable market (TAM) for Demodex blepharitis is approximately 25 million Americans, with 9 million actively seeking treatment [21][22] - The company anticipates that the TAM could expand as more patients become aware of the treatment options available [21][22] Company Strategy and Development Direction - The company is focused on deepening prescribing patterns among existing prescribers and expanding the use cases for XDEMVY [15][16] - Plans for international expansion include market entry strategies for Europe and Japan, with a focus on physician education and market development [27][29] Management's Comments on Operating Environment and Future Outlook - Management noted that Q4 is expected to be a robust growth quarter as patient visits typically increase post-summer [5][6] - The company is optimistic about maintaining high insurance coverage levels and continuing to grow the prescriber base [11][12] Other Important Information - The company is preparing for the initiation of a phase 2 trial for TP-04 in ocular rosacea, with a focus on specific clinical endpoints [30][31] - The company is also exploring opportunities in Lyme disease prevention with TP-05, which is seen as a complementary program to its eye care focus [35][36] Q&A Session Summary Question: How should we think about seasonal trends on a go-forward basis? - Management explained that seasonal dynamics affect patient flow, with Q4 expected to show robust growth due to increased doctor visits post-summer [5][6] Question: Can you discuss the guidance on gross-to-net? - Management detailed that gross-to-net is expected to decrease as discounts reduce over time, with Q1 typically being the highest discount quarter [8][9] Question: What is the potential for expanding the prescriber base? - Management indicated that while the prescriber base has reached 20,000, the focus will now be on increasing the depth of prescribing among existing prescribers [14][15] Question: What are the expectations for the DTC campaign? - Management expressed confidence in the DTC campaign's effectiveness, anticipating continued growth in awareness and patient engagement [18][19] Question: What is the market potential for ocular rosacea? - Management noted that ocular rosacea affects 15 to 18 million individuals, with significant opportunities for treatment as awareness grows [33][34]

Financial Data and Key Metrics Changes - The company reported net revenues of $102.7 million for the last quarter, indicating strong growth since the launch of XDEMVY [2][3] - Guidance for Q3 suggests distribution of 95,000 to 100,000 bottles, reflecting a steady cadence of growth despite seasonal dynamics [1][5] - Gross-to-net is expected to decrease to 43% to 45% for Q3, with a target of low 40% by year-end, driven by reduced discounts as patients progress through deductibles [8][9] Business Line Data and Key Metrics Changes - Over 20,000 eye doctors have prescribed XDEMVY, exceeding the initial target of 15,000, showcasing effective market education and engagement [14][15] - The company has achieved over 90% insurance coverage for XDEMVY, which is significantly above the industry average [11][12] Market Data and Key Metrics Changes - The total addressable market (TAM) for Demodex blepharitis is approximately 25 million Americans, with 9 million actively seeking treatment, indicating substantial growth potential [21][22] - The company anticipates that the TAM could expand as more patients become aware of the treatment options available [21][22] Company Strategy and Development Direction - The company is focused on deepening prescriber engagement and expanding the utilization of XDEMVY across various patient types, including those with dry eye disease and meibomian gland disease [16][17] - Plans for international expansion include market entry strategies for Europe and Japan, with a focus on physician education and market development [27][29] Management's Comments on Operating Environment and Future Outlook - Management noted that Q3 typically experiences slower growth due to seasonal factors, but expects Q4 to be robust as patient visits increase post-summer [5][6] - The company is optimistic about maintaining high insurance coverage levels and continuing to grow prescriber engagement [11][12] Other Important Information - The company is preparing for the initiation of a phase 2 trial for TP-04 in ocular rosacea, with a focus on specific clinical endpoints [30][31] - The company is also exploring opportunities in Lyme disease prevention with TP-05, which is seen as a complementary program to its eye care focus [35][36] Q&A Session Summary Question: How should we think about seasonal trends on a go-forward basis? - Management explained that seasonal dynamics affect patient flow, with Q3 typically slower due to vacations, but expects robust growth in Q4 [5][6] Question: Can you discuss the guidance on gross-to-net? - Management detailed that gross-to-net discounts are expected to decrease as patients move through their deductibles, with a steady state anticipated in the low 40% range [8][9] Question: What is the potential for expanding the prescriber base? - Management indicated that while the prescriber base has reached 20,000, the focus will now be on increasing the depth of prescribing among existing prescribers [14][15] Question: What are the expectations for the DTC campaign? - Management expressed confidence in the DTC campaign's effectiveness, anticipating continued growth in patient awareness and engagement [18][19] Question: What is the market potential for ocular rosacea? - Management noted that ocular rosacea affects 15 to 18 million individuals, with significant opportunities for treatment as awareness grows [33][34]

Core Insights - The biotech industry is characterized by high risks and potential rewards, where positive news can significantly impact share prices and company viability [1] Group 1: Boston Scientific - Boston Scientific Corp. specializes in medical devices for gastrointestinal and pulmonary conditions, with recent FDA safety alerts affecting its heart devices leading to a temporary dip in share price [2][3] - The company reported a 17% year-over-year (YOY) organic sales increase, with a notable 28% growth for its Watchman device, surpassing analyst expectations for both revenue and earnings [4][5] - Analysts are bullish on Boston Scientific, with 24 out of 26 rating it a Buy and a price target suggesting over 10% upside potential [5] Group 2: Arcutis Biotherapeutics - Arcutis Biotherapeutics focuses on dermatological treatments, with its product ZORYVE driving a remarkable 164% YOY growth in product sales for the latest quarter [6][7] - The FDA approved ZORYVE foam for additional uses, expanding its market reach, and the company anticipates further regulatory decisions later in the year [7][8] - Despite facing competition, Arcutis has a strong pipeline and is rated a Buy by six out of seven analysts, with a potential upside of 24% [8] Group 3: Tarsus Pharmaceuticals - Tarsus Pharmaceuticals specializes in eye care, reporting a net sales beat of nearly $103 million, driven by its Demodex treatment XDEMVY [10][11] - The company is conducting a promising Phase II study for its TP-04 treatment for ocular rosacea, contributing to a positive outlook among analysts [11] - Tarsus shares have increased about 4% year-to-date, with analysts indicating over 16% upside potential [11]

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 ...