Core Insights - Tarsus Pharmaceuticals, Inc. (TARS) shares experienced a significant increase of 10.9%, closing at $65.17, with trading volume surpassing the average [1] - The rise in stock price is linked to positive investor sentiment regarding the strong market performance of Tarsus' product, Xdemvy, which generated $181 million in sales in the first half of 2025, indicating a substantial year-over-year growth [2] Company Performance - Tarsus Pharmaceuticals is projected to report a quarterly loss of $0.38 per share, reflecting a year-over-year increase of 37.7%, while revenues are expected to reach $112.8 million, marking a 134.4% increase from the previous year [3] - The consensus EPS estimate for Tarsus has remained stable over the last 30 days, suggesting that stock price movements may not sustain without changes in earnings estimates [4] Industry Context - Tarsus Pharmaceuticals operates within the Zacks Medical - Biomedical and Genetics industry, where another company, Arcutis Biotherapeutics, Inc. (ARQT), saw a decline of 6.3% in its stock price, despite a 31.1% return over the past month [4] - Arcutis Biotherapeutics has an unchanged EPS estimate of -$0.09 for its upcoming report, which represents a 72.7% improvement from the previous year [5]

Group 1 - Elanco Animal Health announced the sale of future tiered royalties and commercial milestones related to Xdemvy for $295 million in cash, aimed at accelerating debt reduction [1] - The proceeds from the sale will help Elanco achieve a net leverage ratio of 3.9x to 4.3x adjusted EBITDA by the end of 2025 [1] - Elanco plans to repay portions of its outstanding term loans, which is expected to reduce interest expenses by approximately $10 million [2] Group 2 - Xdemvy, the first lotilaner-based product approved for human use, addresses Demodex blepharitis and is licensed to Tarsus Pharmaceuticals for exploration of human health applications [3] - The agreement covers tiered royalties on Xdemvy's U.S. net sales from April 2025 through August 2033 [3] - Elanco retains rights to all royalty payments on net sales outside the U.S. and any future human applications of lotilaner beyond ophthalmic solutions [4] Group 3 - Elanco is scheduled to release its Q1 2025 financial results, with analysts expecting adjusted earnings per share of 31 cents and sales of $1.21 billion [4] - The current stock price of Elanco is $9.75, which is below the 200-day moving average of $12.34, indicating potential bearish sentiment [6] - Recent trading saw Elanco's stock decrease by 1.03% to $9.65 [7]