Tarsus Pharmaceuticals (TARS) The 44th Annual William Blair Growth Stock Conference summary

Commercial performance and product launch

• Xdemvy, approved for Demodex blepharitis, launched successfully with $24.7 million in second full quarter sales.

• Over 8,000 of 15,000 targeted eye care professionals have started patients on Xdemvy, with more than 50% being repeat prescribers.

• The product is the only FDA-approved therapy for Demodex blepharitis, targeting an initial 1.5 million early adopter patients out of a 25 million US patient population.

• Real-world efficacy is reported to be even better than clinical studies, with strong physician and patient feedback.

• Gross-to-net discount is expected to improve from 58% to a steady 50% by mid-2025, with Medicare Part D coverage as a key factor.

Market strategy and sales force expansion

• Incremental hiring of 50 sales reps aims to increase frequency of physician engagement, not expand reach.

• Direct-to-consumer streaming TV campaigns are planned for Q4, contingent on payer coverage progress.

• Physician education remains ongoing, especially for those new to Demodex blepharitis.

• The sales force expansion was pre-planned and structured to minimize disruption, with incentives for teamwork.

• More frequent sales rep interactions correlate with increased prescription rates.

Pipeline and future development

• Pipeline includes programs for papulopustular rosacea and a Lyme disease prophylactic, both leveraging the same active ingredient.

• Positive phase IIA data in rosacea and Lyme disease, with high efficacy and durability shown in studies.

• MGD (meibomian gland dysfunction) program showed objective improvements; regulatory path under discussion.

• Updates on MGD, rosacea, and Lyme disease programs expected by Q4 after further FDA interactions.

• Lyme disease program may be out-licensed due to the scale and commercial requirements.