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Tarsus Pharmaceuticals (NASDAQ:TARS) presented its first quarter 2025 financial results on May 1, highlighting exceptional growth for its flagship product XDEMVY and outlining ambitious expansion plans. The eye care specialist reported $78.3 million in net product sales, representing a 217% year-over-year increase and an 18% quarter-over-quarter improvement.
Quarterly Performance Highlights
Tarsus delivered strong first-quarter results across all key performance indicators. XDEMVY, the company’s treatment for Demodex blepharitis, continued its impressive growth trajectory with approximately 72,000 bottles delivered to patients during Q1 2025.
The company has successfully expanded its prescriber base to more than 15,000 eye care providers (ECPs), with a 110% increase in the number of ECPs prescribing XDEMVY weekly compared to Q3 2024. Patient engagement has also improved significantly, with a 140% increase in average weekly website visits compared to Q4 2024.
As shown in the following chart of XDEMVY’s sales growth since launch:
The consistent quarter-over-quarter growth demonstrates XDEMVY’s strong market adoption, with net sales progressing from just $1.7 million in Q3 2023 to $78.3 million in the most recent quarter. This performance positions XDEMVY as one of the fastest-growing products in the anterior segment medicines category.
The company’s comprehensive performance metrics reveal positive trends across all business areas:
XDEMVY Growth Drivers
Tarsus identified several key factors driving XDEMVY’s continued growth. The company has optimized its sales force to change practice patterns and increase utilization across its growing network of eye care providers. Additionally, strong insurance coverage has been secured, with over 90% of commercial, Medicare, and Medicaid lives now covered.
The company’s direct-to-consumer campaign has gained traction, with patients beginning to ask for XDEMVY by name. This marketing effort, coupled with ongoing evidence generation, is increasing utilization across all patient segments.
As illustrated in the following slide on key growth drivers:
The gross-to-net discount has improved significantly from 73% in Q3 2023 to 47% in Q1 2025, though it remains relatively high compared to industry standards. Management noted that further improvements are expected throughout the year.
Pipeline and Expansion Plans
Beyond XDEMVY’s current success, Tarsus outlined its strategy for future growth through pipeline expansion and global market penetration. The company is particularly focused on ocular rosacea as its next major therapeutic target.
According to the presentation, ocular rosacea affects approximately 15-18 million people in the U.S., with over 50% of cases caused by Demodex mites. Tarsus is developing TP-04, a sterile ophthalmic gel targeting the root cause of the disease, with plans to initiate a Phase 2 trial in the second half of 2025.
The company’s approach to ocular rosacea is illustrated here:
Tarsus also detailed its global expansion strategy and pipeline development across multiple regions:
The company has several potential value-driving catalysts on the horizon, including regulatory milestones in Europe, Japan, and Greater China, as well as clinical development for TP-05 for Lyme disease prevention.
Forward-Looking Statements
For the second quarter of 2025, Tarsus projects continued growth with approximately 85,000 to 90,000 XDEMVY bottles expected to be dispensed to patients. The company anticipates a gross-to-net discount of 45-47%, with improvement expected throughout the year.
The company’s leadership expressed confidence in their growth trajectory, positioning Tarsus as a leader in eye care with a proven blueprint for success, a growing flagship product, an advancing pipeline of potentially category-creating medicines, and a strong balance sheet to support continued expansion.
Tarsus stock closed at $41.15 on August 6, 2025, up 1.52% for the day. The shares have traded between $22.44 and $57.28 over the past 52 weeks, reflecting the market’s recognition of the company’s growth story while acknowledging the inherent volatility in the specialty pharmaceutical sector.
Full presentation:
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