This month marks one year since the launch of Tarsus Pharmaceuticals Inc.’s flagship product.
The Irvine biopharmaceutical company, maker of medication for mites in eyes, saw shares rise 14% in the trading session after it posted second-quarter earnings on Aug. 8. At press time, the shares traded at $25.43 each and a $967.4 million market cap.
Tarsus generated $40.8 million in net product sales for its eyedrop Xdemvy, a 65% increase from the previous quarter. The company also reported a loss of 88 cents a share, lower than the 92-cent loss expected by analysts.
The company plans to expand its sales force and market a television campaign later this year.
“The Xdemvy launch continues building a strong foundation to serve patients and doctors with a high-value, new category of medicine, with impressive quarter-over-quarter growth and robust payer coverage, including additional Medicare coverage—making it one of the most successful eyecare launches to date,” Chief Executive Bobak “Bobby” Azamian said in a statement.
Xdemvy is the first and only FDA-approved treatment for Demodex blepharitis, an ocular disease affecting 25 million eye care patients in the U.S., according to officials.
Tarsus has distributed more than 37,000 units of Xdemvy priced at around $1,000 per bottle to patients since launching late last August. The company anticipates getting broad Medicare coverage for Xdemvy in early 2025 through a contract with “one of the largest Medicare payers.”
Adding to its pipeline, Tarsus is developing treatments for other diseases with high unmet needs. Azamian said that Tarsus is on track to submit therapies for meibomian gland disease, Lyme disease and rosacea to the FDA by the end of this year.
In March, Tarsus announced it would issue 2.8 million shares of common stock at $32 per share to raise $100 million. Shares fell 12% to $19.26 when it originally announced plans for the $100 million offering in August 2023.
