Tarsus Pharmaceuticals (TARS) 2025 Conference Transcript

Summary of Tarsus Conference Call Company Overview - Company: Tarsus - Product: XtendV, launched in September 2023 - Market Focus: Demodex blepharitis, ocular rosacea, Lyme disease Key Points Product Launch and Market Penetration - XtendV has experienced strong demand and revenue growth since its launch, with over 90% payer coverage including Medicare and commercial plans [2][3] - The company targets an initial segment of 9 million patients out of an estimated 25 million in the U.S. suffering from Demodex blepharitis [9][10] - The initial target includes patients with endemic blepharitis and meibomian gland dysfunction (MGD) [10] Clinical Efficacy and Safety - Over 85% of patients in Phase III studies reported clinically meaningful results, with a favorable safety profile [6] - The treatment is a six-week regimen, with a noted recurrence rate of about 40% between months six and twelve post-treatment [28][29] Sales and Marketing Strategy - The company has expanded its sales force by hiring an additional 50 sales representatives to enhance market penetration and reduce territory sizes for better efficiency [17][19] - Education campaigns for eye care professionals (ECPs) have been crucial in increasing awareness and adoption of the treatment [12][22] Payer Dynamics and Reimbursement - Rapid payer uptake is attributed to the pharmacoeconomic benefits of XtendV compared to previous treatments like tea tree oil, which were less effective [31][34] - The company reports a gross-to-net discount of approximately 47%, with expectations to decrease to the low 40s by Q4 [41][42] Pipeline and Future Studies - Tarsus is exploring additional indications, including ocular rosacea and Lyme disease, with plans for Phase IV studies in MGD and other conditions [46][51] - The company is developing a scale for assessing ocular rosacea severity, aiming for a Phase II study later this year [52] Financial Outlook - As of Q1, Tarsus reported approximately $48 million in cash, sufficient to support ongoing growth and upcoming studies [56] - The company has not yet provided revenue guidance due to the uncertainty surrounding direct-to-consumer (DTC) impacts [57] Additional Insights - The treatment addresses a significant unmet need in the market, with no FDA-approved alternatives for Demodex blepharitis prior to XtendV [34][35] - The company is focused on operational excellence and evidence generation to support ongoing market expansion [12][46]