Tarsus Pharmaceuticals (TARS) Jefferies 2024 Global Healthcare Conference summary

Financial performance and launch highlights

• Product sales reached $24.7 million in the second full quarter post-launch, with 26,000 bottles dispensed, showing strong sequential growth.

• Gross to net discount improved to 55%, with expectations to reach a steady state of 50% as payer coverage expands.

• Commercial coverage is expected to be fully established by year-end 2024, with Medicare Part D coverage anticipated in 2025.

• The company ended Q1 with $300 million in cash and investments, plus access to additional financing if needed.

• Sales force is expanding by 50% to 150 representatives by Q3 to support growing demand and prescriber engagement.

Market opportunity and product positioning

• Demodex blepharitis affects 25 million Americans, with 7 million actively targeted in clinics and 1.5 million already diagnosed.

• XDEMVY is the first treatment targeting the root cause, replacing prior homeopathic or inadequate therapies.

• Diagnosis is straightforward, taking about 10 seconds during a routine eye exam.

• Pricing is set at $1,850 per course, typically once or twice a year, with payer research supporting the value proposition.

• DTC advertising is planned for Q4 2024 to expand patient awareness and drive further market penetration.

Commercial execution and physician engagement

• Over 8,000 doctors have prescribed the product, representing more than 50% of the target prescriber base.

• Repeat prescribing rates exceed 50%, with utilization increasing as doctors gain experience.

• Physician education began years before launch, shifting now to focus on specific patient types and practice integration.

• Financial incentives exist for both ophthalmologists and optometrists to diagnose and treat Demodex blepharitis.

• DTC efforts are expected to increase the total addressable market by encouraging more patients to seek diagnosis.