What the bad jobs report means for markets
Guggenheim has reaffirmed a Buy rating for NASDAQ:TARS, Tarsus Pharmaceuticals, following promising developments in the launch of their product, Xdemvy, for Demodex blepharitis (DB). The medication, which is the first to be approved for this eye condition, has shown a significant increase in total prescriptions (TRx).
The most recent data from the week of September 27 indicates that TRx numbers reached approximately 4,071, marking a roughly 9% increase from the previous week and setting a new high for the launch period.
The upward trend in prescriptions has been consistent, with over 42,500 TRx reported for the quarter to date, according to healthcare data analytics firm IQVIA. The figure surpasses the company's second-quarter report of around 37,000 bottles dispensed and aligns with Tarsus Pharmaceuticals' guidance for an approximate 10% increase in volume for the third quarter. If these projections hold true, the total TRx for the quarter would be around 41,000, matching the current projections provided the capture rate of IQVIA is accurate.
The projected gross-to-net (GTN) discount of approximately 43% is anticipated to yield third-quarter sales of around $43 million, which is in agreement with the current consensus estimate on the Street.
In other recent news, Tarsus Pharmaceuticals reported a substantial increase in their second quarter financial results for 2024, with sales exceeding $40 million, a 65% increase from the previous quarter.
The company's flagship product, XDEMVY, played a significant role in this revenue growth, with over 37,000 bottles dispensed. Additionally, Oppenheimer maintained a positive outlook for Tarsus Pharmaceuticals, reaffirming an Outperform rating based on recent surveys of Eye Care Professionals (ECPs) who have shown growing recognition of Demodex Blepharitis, leading to an uptick in diagnoses and prescribing practices for XDEMVY.
Tarsus has plans to expand the sales force and launch a consumer television campaign later in the year. The company also anticipates broad Medicare coverage in early 2025 and aims to expand into additional market segments.
Despite potential challenges, including a possible slump in new prescriptions during the third quarter and slightly increased gross net discounts due to the Medicare donut hole issue, Tarsus remains optimistic about its growth trajectory.
InvestingPro Insights
To complement the positive outlook for Tarsus Pharmaceuticals (NASDAQ:TARS) presented in the article, recent data from InvestingPro offers additional context for investors. The company's market capitalization stands at $1.23 billion, reflecting investor confidence in its growth potential. This aligns with the strong prescription numbers for Xdemvy reported in the article.
InvestingPro Tips highlight that analysts anticipate sales growth for Tarsus in the current year, which corroborates the projected third-quarter sales of around $43 million mentioned in the article. Additionally, the company holds more cash than debt on its balance sheet, suggesting financial stability as it expands its sales efforts and launches new marketing campaigns.
The revenue growth of 566.99% over the last twelve months as of Q2 2024 is particularly noteworthy, indicating the significant impact of Xdemvy's launch on the company's financial performance. This exceptional growth rate supports the positive trajectory described in the article regarding prescription numbers and market penetration.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips for Tarsus Pharmaceuticals, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.