Tarsus Pharmaceuticals (TARS) investor relations material

Commercial performance and market strategy

• XDEMVY has achieved strong market penetration, with 95,000–100,000 bottles distributed in Q3 and net revenues of $102.7 million last quarter.

• Over 20,000 eye doctors have prescribed the product, surpassing the initial target of 15,000 prescribers.

• Direct-to-consumer (DTC) campaigns and physician education are driving both prescriber growth and patient demand.

• Insurance coverage exceeds 90% across commercial, Medicare, and Medicaid segments, supporting broad patient access.

• Inventory levels are stable at 2.5 weeks, with tight management to match increasing demand.

Growth drivers and market expansion

• Seasonal trends affect quarterly growth, with Q3 typically slower and Q4 expected to be robust due to patient flow and insurance dynamics.

• Gross-to-net discounts are expected to decline to the low 40% range by year-end, driven by reduced patient discounts and free product programs.

• The focus is shifting from expanding the prescriber base to increasing prescribing frequency among existing doctors.

• Data in related conditions, such as Meibomian gland disease, is expanding use cases and motivating broader prescribing.

• The total addressable market is 25 million, with 9 million currently seeking treatment; DTC and retreatment strategies aim to grow this base.

Retreatment and patient engagement

• Retreatment rates have increased to just over 10%, with a long-term target of 20% as recurrence is common.

• Physician and patient education are key to increasing retreatment rates and maintaining patient engagement.