Tarsus Pharmaceuticals completes $134.8M stock offering

Published 18/03/2025, 21:06
Tarsus Pharmaceuticals completes $134.8M stock offering

IRVINE, CA – Tarsus Pharmaceuticals, Inc. (NASDAQ:TARS), currently valued at $1.77 billion in market capitalization, announced the completion of a significant stock offering, resulting in approximately $134.8 million in net proceeds for the company. The offering, which included the sale of 3,230,336 shares of common stock, was fully subscribed, including the underwriters’ full exercise of their option to purchase additional shares.

The sale took place at a public offering price of $44.50 per share, with the underwriters purchasing the shares at a slightly reduced price of $41.83 per share. This transaction was finalized on Monday, with the underwriters’ option exercised on the preceding Thursday.

The underwriting syndicate was led by Goldman Sachs & Co. LLC, BofA Securities, Inc., and Barclays (LON:BARC) Capital Inc., acting as the representatives for the underwriters involved in the agreement.

The proceeds from this offering are set to provide Tarsus Pharmaceuticals with additional capital to further its operations within the biological products industry. According to InvestingPro data, the company maintains a healthy financial position with a strong current ratio of 4.42 and more cash than debt on its balance sheet. The company, known for its focus on developing innovative treatments, is expected to use the funds to advance its research and development pipeline, as well as for general corporate purposes.

Tarsus’s successful capital raise reflects a positive reception from the investment community and could potentially bolster the company’s financial position as it pursues its strategic objectives.

Investors have taken note of the company’s recent activities, as Tarsus Pharmaceuticals continues to make strides in the biopharmaceutical sector.

This financial event is based on the information provided in a recent SEC filing by Tarsus Pharmaceuticals.

In other recent news, Tarsus Pharmaceuticals reported a strong financial performance for the fourth quarter of 2024, with revenues of $66.4 million, surpassing the expected $57.53 million. The company also posted an earnings per share (EPS) of -$0.60, better than the forecasted -$0.77. Guggenheim and Jefferies have responded to Tarsus’ performance by raising their stock price targets to $78 and $58, respectively, while maintaining a Buy rating. Meanwhile, Tarsus has announced a $100 million public stock offering, with Goldman Sachs, BofA Securities, Barclays, and Oppenheimer & Co. serving as joint book-running managers.

Tarsus Pharmaceuticals revealed that its XDEMVY sales reached $66.4 million in the fourth quarter, contributing to a total of $180 million for the year, exceeding analyst expectations. The company plans to expand its direct-to-consumer campaigns and continue its research and development efforts, including its ocular rosacea and Lyme disease prevention programs. H.C. Wainwright reaffirmed its Buy rating with a $73 price target, highlighting the company’s U.S. market potential for XDEMVY and its attractive growth profile.

The company has filed a registration statement with the SEC for the public offering, which is subject to market conditions. Analysts from Jefferies and Guggenheim expressed confidence in Tarsus’ financial strategy and market performance, citing the company’s path to profitability and strong sales figures. Despite a recent stock decline, analysts emphasized the potential for future growth, indicating that the market may be undervaluing Tarsus Pharmaceuticals’ achievements and prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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