Tarsus Pharmaceuticals (TARS) Jefferies 2024 Global Healthcare Conference summary

Financial performance and launch highlights

• Product sales reached $24.7 million in Q1, marking the second full quarter since launch and showing strong sequential growth from $13 million in Q4.

• 26,000 bottles were dispensed in Q1, up from 17,400 in Q4, reflecting robust demand.

• Gross to net discount improved to 55%, with expectations to reach a steady state of 50% as payer coverage expands.

• Commercial coverage is expected to be fully established by year-end, with Medicare Part D coverage anticipated in 2025.

• Ended Q1 with $300 million in cash and investments, plus access to additional financing if needed.

Market opportunity and product positioning

• Demodex blepharitis affects 25 million Americans, with 7 million actively managed in clinics and 1.5 million already diagnosed.

• XDEMVY targets the root cause of the disease, offering a unique solution where previous treatments were only palliative.

• The drug is priced at $1,850 per course, typically used once or twice a year.

• Market expansion is expected through DTC advertising and increased physician education, aiming to grow the addressable patient base beyond current estimates.

Commercial execution and physician engagement

• Sales force is expanding by 50% to 150 representatives by Q3, targeting 15,000 eye care professionals split evenly between optometrists and ophthalmologists.

• Over 8,000 doctors have prescribed the product, with a repeat prescribing rate above 50%.

• Physician education efforts have shifted from disease awareness to optimizing product use in specific patient populations.

• DTC advertising is planned for Q4 to further drive patient demand and expand the market.