Tarsus Pharmaceuticals (TARS) Stifel 2026 Virtual Ophthalmology Forum summary

Commercial performance and market strategy

• XDEMVY launched in 2023 for Demodex blepharitis, targeting a disease affecting 25 million Americans.

• Over 20,000 doctors have prescribed XDEMVY, with a core audience of 15,000 accounting for 80%-90% of volume.

• Sales force expanded by 50% after the first year and an additional 10% this year, focusing on deepening engagement with top accounts.

• Direct-to-consumer advertising and patient education have increased patient-driven diagnoses.

• Optometrists contribute about two-thirds of volume due to clinic time and reimbursement incentives.

Market penetration and growth outlook

• Approximately 500,000 patients have been treated, indicating modest market penetration.

• Peak sales guidance for XDEMVY raised to $2 billion, driven by expanding prescriber base and consumer demand.

• 2024 revenue guidance is $670 million-$700 million, with growth expected from deeper prescribing and consumer activation.

• Seasonality affects quarterly growth, with stronger performance in Q2 and Q4.

• Retreatment rate expected to stabilize at 20% annually as mites naturally recur.

Pipeline development and future plans

• Two pipeline programs in phase II: ocular rosacea and Lyme disease prevention, with data readouts expected early next year.

• Ocular rosacea program uses a sterile ophthalmic gel targeting redness and irritation, actively enrolling for phase II.

• Lyme disease prevention uses the same molecule in oral form, aiming for monthly dosing to prevent tick-borne infection.

• Phase II Lyme study focuses on drug levels and safety, with phase III likely requiring a large prevention study.

• Plans to add at least one new program annually to broaden impact.