Tarsus Pharmaceuticals (TARS) FY Conference Transcript

Tarsus Pharmaceuticals (TARS) FY Conference Summary Company Overview - Tarsus Pharmaceuticals is a commercial stage biotech company focused on the eye care space, specifically targeting Demodex Blepharitis with its drug Xtampi, launched in September 2023 [4][5]. Industry Insights - The eye care market is significant, with approximately 25 million patients in the U.S. affected by Demodex Blepharitis, and Tarsus is targeting 9 million patients actively seeking treatment [5]. Key Launch Insights - The launch of Xtampi has been successful, with sequential increases in demand and revenue [5]. - Commercial coverage was achieved earlier than expected, with Medicare coverage starting in early 2025 [6]. Sales Force Expansion - Tarsus expanded its sales force by hiring 50 additional sales representatives, which has positively impacted the frequency of doctor visits and prescription rates [6][7]. - It takes an average of 5 to 10 visits for sales reps to convert doctors to regularly prescribe Xtampi [8][9]. Prescribing Patterns - Tarsus targets about 15,000 eye care professionals (ECPs) who write 85% of scripts in the dry eye space [10]. - As of December, 40% of ECPs were prescribing Xtampi beyond the Demodex Blepharitis category [11]. - The company has dispensed approximately 225,000 scripts, indicating significant room for growth given the target of 9 million patients [15]. Future Growth and Guidance - Tarsus expects to see continued growth in bottle dispensed, although percentage growth may slow as the base grows larger [22]. - The company anticipates a guidance of 85,000 to 90,000 new prescriptions for the second quarter, factoring in seasonal impacts [20]. Refill Dynamics - Currently, 8-9% of prescriptions are refills, with a target of reaching a 20% refill rate based on clinical history [24][25]. - The company is focused on acquiring new patients as the primary growth driver, rather than relying heavily on refills [26]. Direct-to-Consumer (DTC) Campaign - Tarsus has budgeted $70 million to $80 million for DTC advertising, including streaming and network TV campaigns [42]. - The DTC campaign aims to increase patient engagement and script dispensation, with expected impacts to be seen in the latter half of the year [44][46]. International Development Plans - Tarsus has partnered with Grand Pharma for its drug approval in China, which typically takes 18-24 months [49][50]. - European approval is anticipated in the second half of 2027, contingent on regulatory requirements for a preservative-free formulation [51][52]. Pipeline Developments - Tarsus is preparing to initiate a Phase 2 study for ocular rosacea, targeting a significant unmet need in the market [58][60]. - The company is also exploring a potential Lyme disease treatment, with plans for a Phase 2b study in 2026 [70][73]. Intellectual Property Strategy - Tarsus holds strong intellectual property protections, with patents extending through 2038 and beyond for various uses of its products [75][76]. Conclusion - Tarsus Pharmaceuticals is positioned for growth in the eye care market with a successful product launch, an expanding sales force, and a robust pipeline of future treatments. The company is actively engaging in DTC marketing and exploring international opportunities while maintaining a strong focus on intellectual property.