Tarsus Pharmaceuticals (TARS) 46th Annual William Blair Growth Stock Conference summary

Commercial performance and market strategy

• XDEMVY is in its third year of launch, with 2024 revenue guidance of $670–$700 million and a projected U.S. peak of over $2 billion for Demodex blepharitis treatment.

• Direct-to-consumer (DTC) campaigns have raised unaided awareness from 0% to 25% in one year, driving patient engagement and funnel growth.

• Nearly half of targeted eye care professionals are prescribing weekly, supported by a 150-rep sales force and new key account leaders.

• Retreatment rates are guided at 20% annually, factored into peak revenue estimates.

• Seasonality affects prescription trends, with Q1 dips and Q4 peaks, but overall growth remains strong.

Product efficacy, safety, and reimbursement

• XDEMVY is the only FDA-approved therapy for Demodex blepharitis, showing strong efficacy and safety in clinical studies.

• 85% of patients experience clinically meaningful results, with real-world outcomes often exceeding trial data.

• The product benefits from robust intellectual property protection through 2038.

• Reimbursement landscape is favorable, with 90% coverage and most patients paying around $30, supported by assistance programs.

• The prescription process is streamlined, offering home delivery or pharmacy pickup.

Pipeline development and future opportunities

• Pipeline leverages the same active ingredient as XDEMVY, targeting ocular rosacea and Lyme disease prophylaxis.

• Ocular rosacea affects 15–17 million patients, with no current FDA-approved therapies; the program uses a proprietary sterile gel.

• Lyme disease prophylactic is an oral pill, aiming for 95% tick kill within 24 hours and 30-day durability.

• Both programs expect pivotal data readouts in the first half of 2027.

• Proprietary clinical endpoints and tailored formulations are being developed and validated for new indications.