Tarsus Pharmaceuticals (TARS) 2024 Wells Fargo Healthcare Conference summary

XDEMVY launch progress and growth drivers

• One year into launch, XDEMVY is establishing a new treatment category for Demodex blepharitis, a prevalent eyelid disease affecting millions.

• Strong adoption among payers and eye care providers, with 11,000 doctors having direct experience and over 60% writing multiple prescriptions.

• Sales force expanded from 100 to 150, with early signs of increased adoption due to enhanced education efforts.

• Direct-to-consumer (DTC) campaign launching in Q4, aiming to drive patient awareness and office visits.

• Peer-to-peer education and ongoing data dissemination are key to deepening physician engagement.

Market opportunity and financial outlook

• Demodex blepharitis market estimated at 7 million addressable patients, with 1.5 million already seeking treatment.

• Peak sales potential projected at over $1 billion, with steady growth expected and a peak around seven years from now.

• Gross-to-net discount guidance improved to 42-43% at steady state, lower than initial expectations.

• Seasonal and operational factors, such as sales force training and holidays, temporarily impacted script volume but are expected to normalize.

• DTC campaign investment of $10-15 million planned for Q4 and Q1, with ROI assessment guiding future spend.

Expansion and development pipeline

• Early anecdotal uptake in adjacent segments like cataract surgery and meibomian gland disease, with supporting clinical data for expansion.

• Preservative-free XDEMVY formulation in development for European market, with regulatory and pricing strategy updates expected in Q4.

• Three key pipeline programs: meibomian gland disease (Phase IIa data promising), rosacea (ocular focus under consideration), and Lyme disease (Phase IIa data shows high tick-kill rates).

• Updates on next steps for all pipeline programs anticipated by year-end.