Tarsus Pharmaceuticals, Inc. Q2 FY2025 earnings call

Bobby's Remarks

• XDEMVY's launch is a success, with over $100M net sales in Q2 and 91,000 bottles dispensed. It has established a new category in eye care. The DTC campaign is driving prescription volumes, and unaided awareness of XDEMVY has tripled. The pipeline, including TP-04 for ocular rosacea, is progressing.### Aziz's Remarks
• Q2 was a standout quarter with over $100M net sales and 30% sequential revenue growth. The DTC campaign is effective, with elevated consumer awareness, high website engagement, and a growing prescriber base (over 20,000 ECPs prescribing XDEMVY).### Jeff's Remarks
• Q2 net sales were $102.7M. Gross-to-net discount was ~45% in Q2, expected to improve to low 40s by year-end 2025. SG&A to remain consistent with Q2. Q3 expected bottles dispensed 95,000-100,000. TP-04 Phase II study to start by end of 2025, R&D costs $7M-$10M split 2025-2026.

In Q2, XDEMVY generated over $100 million in net sales and approximately 91,000 bottles were dispensed to patients. XDEMVY is the primary driver of segment performance, with its net sales and dispensing volume showcasing strong growth in the eye care segment.

Q3 Guidance

• Expected inventory levels to remain ~2.5 weeks. Gross-to-net discount expected to improve to 43%-45% in Q3, low 40s by year-end 2025. SG&A to remain consistent with Q2. Bottles dispensed expected 95,000-100,000.### Pipeline Guidance
• TP-04 Phase II study to start by end of 2025, R&D costs $7M-$10M split 2025-2026. Japan regulatory meetings in H2 2025, European regulatory approval for preservative-free XDEMVY expected in 2027.

Q: Congrats on the nice quarter, can you talk about increase in new prescribers, DTC campaign spend, and gross-to-net?

A: Aziz mentioned new prescribers are from targeted base, DTC campaign to continue, and Jeff said gross-to-net expected to be in low 40s.

Q: Near 2-year mark of XDEMVY approval, cadence of launch and refined peak potential?

A: Aziz said launch cadence is steady with great foundation, Jeff said peak potential higher than anticipated.

Q: Fourth quarter volume growth, prescriber mix, peak potential?

A: Jeff said Q4 volume growth not expecting hockey stick, Aziz said prescriber mix is ophthalmology and optometry, Bobby said peak potential tantalizing but ahead on metrics.

Q: Refinement of steady-state retreatment rates, third-party aggregators, TAM?

A: Aziz said retreatment trending up, third-party understates, TAM huge.

Q: DTC campaign effectiveness and unaided awareness?

A: Aziz said DTC effective due to strategy, layering, and lots of headroom for unaided awareness.

Q: New prescribers from related indications?

A: Aziz said new prescribers driven by core prescribers' experience and patient overlap.

Q: Ocular rosacea program update?

A: Bobby said TP-04 Phase II study to start by end of 2025, on track with preparations.