Tarsus Pharmaceuticals (NasdaqGS:TARS) FY Conference Transcript

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]