Tarsus Pharmaceuticals (TARS) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 XDEMVY net product sales of $48.1M, up 18% sequentially, with over 41,400 bottles dispensed and broad payer coverage exceeding 80%.

• Expanded sales force by 50 new representatives to 150, launched first direct-to-consumer TV campaign, and strengthened leadership with new Chief Medical Officer and Board member.

• Presented new clinical data showing XDEMVY's efficacy in Meibomian gland disease and Demodex blepharitis, expanding the addressable patient population.

• Net loss for Q3 2024 was $23.4M, improved from $39.1M in Q3 2023, driven by higher sales but offset by increased operating expenses.

• Positive clinical data reported for pipeline programs TP-04 (rosacea) and TP-05 (Lyme disease prophylaxis), with regulatory discussions planned.

Financial highlights

• Q3 2024 XDEMVY net product sales reached $48.1M, with a gross-to-net discount of ~40% and gross margin of approximately 93%.

• Q3 2024 net loss was $23.4M, improved from $39.1M in Q3 2023; operating expenses were $73.3M, mainly due to commercial expansion.

• Cash, cash equivalents, and marketable securities totaled $317.0M as of September 30, 2024.

• Year-to-date 2024 revenue was $116.5M, compared to $4.4M in the prior year period.

• Net loss per share improved to $(0.61) in Q3 2024 from $(1.28) in Q3 2023.

Outlook and guidance

• Expect continued growth in XDEMVY prescriptions in Q4 2024, with guidance of 50,000–55,000 bottles dispensed and gross-to-net discount projected at 42%–46%.

• Anticipate increased OpEx in Q4 due to full impact of sales force and DTC campaign.

• No additional sales force or DTC expansion needed for MGD opportunity; current resources sufficient.

• Expects to recognize benefits from new Medicare contracts in 2025 and plans regulatory discussions for TP-04 and TP-05 by year-end 2024.

• No additional Phase 3 study required for XDEMVY approval in Europe; potential EU approval anticipated in 2H 2027.