Tarsus Pharmaceuticals' Q1 2025 Earnings Call: Key Contradictions on DTC Campaign, Prescribing Dynamics, and Financial Projections

DTC campaign impact, DTC campaign duration and expense, XDEMVY prescribing split between Medicare and commercial, operating expenses and financial projections, XDEMVY sales force and market penetration are the key contradictions discussed in Tarsus Pharmaceuticals' latest 2025Q1 earnings call.



XDEMVY Sales and Prescription Growth:
- Tarsus Pharmaceuticals reported XDEMVY sales of more than $78 million for Q1 2025, marking a 217% year-over-year increase.
- Approximately 72,000 bottles were dispensed to patients, highlighting a significant growth in the prescribing of XDEMVY.
- This growth was driven by strong execution in establishing a new market, securing broad payer coverage, and the effective use of a direct-to-consumer advertising campaign.

Increased Prescribing Frequency:
- The number of ECPs writing more than one prescription per week increased by approximately 110% compared to the end of Q3 2024.
- There was also a notable increase in daily prescribing, as physicians moved from monthly to weekly and daily prescribing.
- This trend was attributed to the expanded sales force, broad commercial and Medicare coverage, and the impact of the direct-to-consumer advertising campaign.

Equity Financing and Financial Position:
- Tarsus completed an equity financing round, raising approximately $135 million, which was oversubscribed and upsized.
- The company ended Q1 with $407.9 million in cash and cash equivalents.
- This financing demonstrates shareholder confidence in Tarsus' potential and strengthens its financial position for future growth.

Pipeline and Global Expansion:
- Tarsus is pursuing its next category-creating opportunity in Ocular Rosacea, with plans to initiate a Phase 2 trial for TP-04 later in the year.
- The company is preparing for potential regulatory approval in Europe for XDEMVY in 2027, indicating strong global expansion potential.
- The progress in these areas is supported by the strong clinical data and product profile of XDEMVY, as well as the company's strategy to create new categories in eye care.