Tarsus Announces Q2 and YTD 2024 Financial Results and Recent Achievements

Tarsus Pharmaceuticals, Inc., headquartered in Irvine, California, reported significant financial results for the second quarter of 2024, ending June 30th. The company, which focuses on addressing unmet medical needs with innovative science and technology, particularly in eye care, showcased impressive growth metrics driven by their flagship product, XDEMVY.

In the second quarter of 2024, Tarsus achieved net product sales of $40.8 million for XDEMVY, marking a substantial 65% increase from the first quarter. The year-to-date sales for XDEMVY totaled $65.5 million. This growth was complemented by a significant reduction in the gross-to-net discount, which improved to 44% from 55% in the previous quarter, reflecting strong payer coverage, including both commercial and Medicare payers.

The commercial success of XDEMVY is also highlighted by the delivery of over 37,000 bottles to patients within the second quarter. Furthermore, approximately 11,000 Eye Care Professionals (ECPs) have started prescribing XDEMVY since its launch, with more than 60% of them prescribing it to multiple patients. The coverage by major commercial plans and Medicare has expanded significantly, with new contracts covering more than 30 million lives anticipated to begin impacting the business in the third quarter of 2024.

Tarsus is also on track to deploy an additional 50 sales representatives by the end of the third quarter of 2024. This expanded sales force is expected to bolster the reach and adoption of XDEMVY, further supported by a planned direct-to-consumer marketing campaign aimed at accelerating growth and increasing patient awareness of Demodex blepharitis.

In addition to the commercial milestones, Tarsus is continuing to advance its pipeline. Plans are in place to engage with the FDA on three investigational therapies: TP-03 for Meibomian Gland Disease, TP-04 for Papulopustular Rosacea, and TP-05 for Lyme disease prevention, all by the end of 2024.

Financial results for the second quarter of 2024 reveal total revenues of $40.8 million, primarily driven by net product sales. The cost of sales amounted to $3.0 million, which included manufacturing costs, royalties, and amortization expenses related to XDEMVY's approval milestone. Research and development (R&D) expenses were $12.3 million, a slight decrease from the previous year, attributed to reduced spending on TP-04 and TP-05, partially offset by increased compensation expenses.

Selling, general, and administrative (SG&A) expenses soared to $58.8 million, driven by compensation-related expenses, commercial launch costs for XDEMVY, and increased IT, legal, and corporate expenses. Consequently, the company ended the quarter with a net loss of $33.3 million, compared to $31.4 million the previous year. Cash, cash equivalents, and marketable securities stood at $323.6 million as of June 30, 2024, boosted by a substantial initial draw from a new credit facility.

Year-to-date financial outcomes indicate revenues of $68.4 million, comprising $65.5 million from product sales and $2.9 million from license fees and collaboration revenue. Cost of sales was $4.7 million, while R&D expenses were marginally reduced to $24.4 million due to lower program spending and milestone expenses, balanced by increased compensation costs. SG&A expenses reached $110.4 million, primarily due to commercial and market research costs for XDEMVY's launch, IT, legal, and professional expenses.

Tarsus reported a net loss of $69.0 million year-to-date, with a basic and diluted net loss per share of $(1.89). Despite the financial losses, the company remains optimistic about its growth trajectory and the potential market impact of its products, supported by a strong cash position and strategic investments in its pipeline and commercial operations.