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]

Financial Data and Key Metrics Changes - In Q1 2025, Tarsus Pharmaceuticals generated over $78 million in Xtendi sales, representing a year-over-year increase of 217% [5][21] - Approximately 72,000 bottles of Xtendi were dispensed to patients, with a quarter-over-quarter growth of 18% [14][21] - Total operating expenses were approximately $104.6 million, an increase of $14 million compared to Q4 2024, primarily driven by direct-to-consumer advertising and related commercial costs [22] Business Line Data and Key Metrics Changes - Xtendi's sales growth was driven by an expanded sales force, which has led to a significant increase in prescribing frequency among eye care professionals (ECPs) [14][15] - The number of ECPs writing more than one prescription per week increased by approximately 110% compared to the end of Q3 2024 [14] Market Data and Key Metrics Changes - The company reported that over 90% of commercial and Medicare lives are covered, which has significantly reduced barriers to physician adoption [15][16] - The DTC campaign has increased average weekly website visits by 140% in March 2025 compared to December 2024 [16] Company Strategy and Development Direction - Tarsus aims to establish itself as a leader in eye care by creating new categories of treatment, such as ocular rosacea, and expanding the market for Xtendi [7][10] - The company is focused on leveraging its strong financial position to drive growth and advance its pipeline of category-creating medicines [11][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of Xtendi, anticipating an increase in bottles dispensed to a range of 85,000 to 90,000 in Q2 2025 [26] - The company expects to see continued growth despite typical seasonal headwinds in the summer [26] Other Important Information - Tarsus recently secured approximately $135 million in equity financing, which strengthens its financial position and supports ongoing growth initiatives [10][25] - The company is on track to initiate a Phase II trial for TPO4 in ocular rosacea later this year [10][59] Q&A Session Summary Question: Have there been any disruptions in meeting with the FDA regarding pipeline products? - Management confirmed there have been no delays in meeting schedules with the FDA [32] Question: What is the current split between Medicare and commercial prescriptions? - The prescribing volume is currently split relatively equally between Medicare and commercial prescriptions, with Medicare coverage acting as a significant growth driver [33][34] Question: What are the key drivers for repeat prescribing? - Key drivers include an expanded sales force and improved coverage, which have led to increased frequency of prescribing among doctors [38][40] Question: How is the feedback from the ORION Registry and MGD data being received? - Doctors are responding positively to the new data, which is prompting them to diagnose and treat more patients across various segments [55][56] Question: What are the potential factors that might affect future guidance? - Factors include the impact of the DTC campaign and macroeconomic events that could influence visibility [64] Question: What is the expected level of stocking in the channel? - The company does not anticipate significant changes in inventory levels, which have remained consistent at around two to two and a half weeks [67]

Financial Data and Key Metrics Changes - In Q1 2025, Tarsus Pharmaceuticals generated over $78 million in Xtendi sales, a year-over-year increase of 217%, driven by approximately 72,000 bottles dispensed to patients [4][20] - The gross to net discount was approximately 47%, reflecting strong coverage and an adjustment to Medicare accrual estimates [20][21] - Total operating expenses were approximately $104.6 million, an increase of $14 million compared to Q4 2024, primarily due to direct-to-consumer advertising and related marketing costs [21][22] - The company ended the quarter with approximately $407.9 million in cash and cash equivalents, bolstered by a recent equity raise of approximately $135 million [23] Business Line Data and Key Metrics Changes - Xtendi's sales growth was driven by an expanded sales force and increased prescribing frequency among eye care professionals (ECPs), with a 110% increase in ECPs writing more than one prescription per week compared to Q3 2024 [13][14] - The company anticipates dispensing between 85,000 to 90,000 bottles in Q2 2025, with a gross to net discount expected in the range of 45% to 47% [25] Market Data and Key Metrics Changes - The company reported that over 90% of commercial and Medicare lives are covered, significantly reducing barriers to physician adoption [15][20] - The DTC campaign has led to a 140% increase in average weekly website visits in March 2025 compared to December 2024 [15][18] Company Strategy and Development Direction - Tarsus aims to establish itself as a leader in eye care by creating new categories of treatment, with a focus on Xtendi and the upcoming Xembi launch [4][11] - The company is exploring global opportunities for Xtendi, particularly in Japan and Europe, with potential regulatory approval in Europe expected by 2027 [7][8] - Tarsus is also advancing its pipeline with TPO4 for ocular rosacea, targeting a significant and underserved market [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of Xtendi, citing strong sales force performance and effective DTC campaigns as key drivers [19][26] - The company anticipates continued revenue growth, despite potential headwinds in Q3 due to seasonal factors, with stronger growth expected in Q4 [25][26] Other Important Information - The company has a proven blueprint for success and is well-positioned for sustained revenue growth in the coming years [11][26] - Management highlighted the importance of patient education and awareness as critical components of their growth strategy [78] Q&A Session Summary Question: Have there been any disruptions in meeting with the FDA regarding pipeline products? - Management confirmed there have been no delays in meeting schedules and they are on track to start trials in the second half of the year [30][31] Question: What is the current split between Medicare and commercial prescriptions? - The script volume is currently split relatively equally between Medicare and commercial prescriptions, with Medicare coverage acting as a significant growth driver [33][34] Question: What are the key drivers for repeat prescribing? - Key drivers include an expanded sales force and improved coverage, which have led to increased frequency of prescribing among doctors [38][40] Question: How is the feedback from the ORION Registry and MGD data being received? - Doctors are responding positively to the new data, which is prompting them to diagnose more patients and consider a broader range of conditions [54] Question: What are the potential factors affecting future guidance? - Factors include the impact of the DTC campaign and macroeconomic events, which may affect visibility for long-range guidance [63] Question: What is the expected level of stocking in the channel? - The company does not anticipate changes in stocking levels, which have remained consistent at around two to two and a half weeks [66]