TARS · Tarsus Pharmaceuticals, Inc.

Tarsus Pharmaceuticals reported strong first quarter 2026 results, driven by continued momentum of XDEMVY for Demodex blepharitis. Net product sales reached $145.4 million, an 85% year-over-year increase, attributed to higher volume and improvements in gross-to-net discounts. The company maintained a robust gross margin of 94%, slightly up from 93% in the prior year. Operating expenses increased significantly, with R&D expenses rising to $22.4 million (from $14.4 million) due to payroll costs, an upfront in-license payment, and TP-05 program expenses. SG&A expenses surged to $136.4 million (from $85.0 million) driven by commercial and marketing costs, including DTC advertising, patient support, and professional fees. Despite higher expenses, net loss narrowed to $7.0 million from $25.1 million, reflecting revenue growth and a $16.7 million license fee from a China regulatory milestone. Management reaffirmed full-year 2026 XDEMVY net product sales guidance of $670-700 million and reiterated peak sales potential exceeding $2 billion. The company highlighted strong DTC engagement, with high-value website actions up ~40% quarter-over-quarter, and plans to activate ~20 new Key Account Leaders by Q3 2026. Pipeline progress includes initiation of the Phase 2 Calliope trial for TP-05 (Lyme disease prevention) with topline data expected in H1 2027, and ongoing Phase 2 trial for TP-04 (ocular rosacea) with data also expected in H1 2027. The balance sheet remains strong with $388.7 million in cash and marketable securities.