Tarsus Pharmaceuticals' Q4 2024: Unpacking Contradictions in Sales Strategy, Retreatment Rates, and R&D Investments

These are the key contradictions discussed in Tarsus Pharmaceuticals' latest 2024Q4 earnings call, specifically including: Sales Force Expansion and Product Impact, Retreatment Rate Expectations, Gross-to-Net Dynamics, and R&D Spending Allocation:



XDEMVY Performance and Prescriber Growth:
- Tarsus reported $180.1 million in XDEMVY net product sales for the full year 2024.
- The company delivered more than 163,000 bottles of XDEMVY to patients in 2024.
- The growth was driven by the expansion of the sales force from 100 to 150 representatives and a strong sales presence leading to more than 15,000 ECPs prescribing XDEMVY.

DTC Campaign Impact:
- Tarsus expanded its direct-to-consumer TV ad campaign into network television events, reaching significant audience exposure.
- The campaign contributed to increasing website engagement and material downloads, with patients raising hands for help with specific eye conditions.
- This strategic effort is expected to drive more potential patients to ECPs, enhancing the depth of prescribing over time.

Market Access and Coverage Expansion:
- Broad commercial and Medicare coverage extended to more than 90% of potential patient lives, opening access for patients across commercial and Medicare segments.
- This coverage significantly facilitated ease of prescribing and access for patients, particularly impacting the Medicare patient population.
- The coverage expansion played a pivotal role in driving the depth of prescribing among ECPs.

Pipeline Advancements:
- Tarsus secured FDA guidance for upcoming Phase II trials of Ocular Rosacea and Lyme disease prevention.
- The company plans to initiate a Phase II trial for TP-04 in Ocular Rosacea in the second half of 2025, focusing on objective measures of disease.
- These advancements are part of Tarsus's strategy to create new treatment categories and address large unmet needs in healthcare.