Tarsus Pharmaceuticals (TARS) 2024 Wells Fargo Healthcare Conference summary

XDEMVY launch progress and market adoption

• One year into launch, XDEMVY is establishing a new treatment category for Demodex blepharitis, a disease affecting 25 million Americans, with 7 million as the addressable market.

• Strong adoption among payers, with commercial and Medicare traction reflected in a 56% net discount, ahead of projections.

• Over 15,000 doctors have been called on, with 11,000 having direct experience and 60% repeat prescribers; 100,000 patients treated so far.

• Sales force expanded from 100 to 150, with early signs of increased adoption; focus on education and peer-to-peer programs.

• Direct-to-consumer (DTC) campaign launching in Q4, aiming to drive patient awareness and office visits.

Growth drivers and financial outlook

• Retreatment rates expected to rise to 20–30% as 40% of patients recur within a year, based on Phase 3 data.

• Billion-dollar peak sales potential projected, with steady growth expected and peak in about seven years.

• Gross-to-net discount guidance improved to 42–43% at steady state, lower than initial 50% estimate.

• DTC campaign investment of $10–15 million planned for Q4 and Q1, with ROI assessment to determine future spend.

• Seasonal and operational disruptions (sales force training, holidays) factored into guidance, with script growth expected to accelerate in Q4.

Expansion opportunities and pipeline development

• Early anecdotal uptake in adjacent segments like cataract surgery and meibomian gland disease; Phase IIa data shows normalization of gland function.

• Preservative-free XDEMVY formulation in development for European market, with regulatory and pricing updates expected in Q4.

• Pipeline includes programs for meibomian gland disease, rosacea (ocular focus), and Lyme disease prophylaxis, with key decisions and data readouts expected by year-end.

• Potential for partnerships in non-eye care indications, especially for Lyme disease.