Tarsus Pharmaceuticals, Inc. (TARS) | Investment Case

1. Company Snapshot

1.a. Company Description

Tarsus Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of novel therapeutic candidates for ophthalmic conditions.Its lead product candidate is TP-03, a novel therapeutic that is in Phase III for the treatment of blepharitis caused by the infestation of Demodex mites, as well as to treat meibomian gland disease.The company is also developing TP-04 for the treatment of rosacea; and TP-05 for Lyme prophylaxis and community malaria reduction.

In addition, the company develops lotilaner to address diseases across therapeutic categories in human medicine, including eye care, dermatology, and other diseases.Tarsus Pharmaceuticals, Inc.was incorporated in 2016 and is headquartered in Irvine, California.

Show Full description

1.b. Last Insights on TARS

Tarsus Pharmaceuticals' recent performance was driven by robust quarterly net product sales of $102.7 million, a 152% year-over-year increase, within two years of XDEMVY's launch. The company's Q2 2025 earnings call highlighted progress, despite a quarterly loss of $0.48 per share. Participation in upcoming investor conferences and recent business achievements are expected to maintain momentum. According to Zacks, the company's revenue estimates were topped in Q2. A potential catalyst for growth lies in its biotech opportunities.

1.c. Company Highlights

Last Price	81.77
Change Percentage	-0.07%
Open	81.98
Previous Close	81.83
Market Cap ( Millions)	3471
Volume	239621
Year High	83.47
Year Low	38.51
M A 50	71.0
M A 200	52.91

FCF Yield	-1.80%
Dividend Yield	0.00%
ROE	-26.29%
Debt / Equity	0.00%
Net Debt / EBIDTA	143.01%
Price To Book	10.4
Price Earnings Ratio	-42.93
Price To FCF	-55.51
Price To sales	9.48
EV / EBITDA	-42.61

2. Tarsus Pharmaceuticals' Exceptional Q3 2025 Results: A Closer Look

Tarsus Pharmaceuticals delivered a robust financial performance in Q3 2025, with net revenue reaching $119 million, driven primarily by the strong uptake of its flagship product, XDEMVY. The company's EPS loss narrowed to -$0.3, beating estimates of -$0.35. Gross-to-net discount stood at 44.7%, in line with the top end of guidance. As Aziz Mottiwala noted, "The growth reflects not only strong execution but continued validation from the field, with XDEMVY becoming a trusted part of daily eye care practice."

Publication Date: Nov -12

                                    📋 Highlights
                                    Q3 Net Revenue::
                                                Generated $119 million in net revenue from XDEMVY, up double digits from Q2.
Prescription Growth::
                                                Over 103,000 bottles delivered to patients, with 5,000 weekly prescribers (20% QoQ increase).
Gross-to-Net Discount::
                                                Stabilized at 44.7%, in line with guidance and flat compared to Q2.
Retreatment Rates::
                                                10% weekly refills, rising to mid-high teens for early cohorts, nearing 20% annualized target.
DTC Effectiveness::
                                                ROI growing with 2026 DTC spend expected to remain elevated, driving unaided awareness and prescriptions.

                                

Revenue Growth and Product Traction

The company dispensed over 103,000 bottles of XDEMVY to patients during the quarter, with more than 20,000 doctors prescribing the product, representing a 20% increase from the previous quarter. The number of ECPs prescribing more than once a week has increased by approximately 30%, indicating a growing depth of prescribing. Refill rates are also showing promise, with around 10% of weekly prescriptions being refills, climbing to mid-teens amongst the earliest patient cohorts.

Valuation and Growth Expectations

With analysts estimating revenue growth of 52.1% for next year, the current valuation metrics appear to be reflecting a high growth trajectory. The stock trades at a P/S Ratio of 8.77 and an EV/EBITDA of -39.3, indicating that the market is pricing in significant future growth. The ROE and ROIC are currently negative, at -26.29% and -20.94%, respectively, but this is expected as the company invests in growth. The Net Debt / EBITDA ratio stands at 1.43, suggesting a manageable debt position relative to EBITDA.

Operational Highlights and Future Outlook

Tarsus is focused on educating physicians and patients about the chronic nature of Demodex blepharitis and the importance of regular check-ups to maintain therapy. The company is also investing in Direct-to-Consumer (DTC) efforts, which have shown a positive ROI and are expected to continue driving growth into next year. With a strong launch trajectory for XDEMVY and a robust growth outlook, Tarsus is well-positioned to capitalize on the expanding market opportunity.

3. NewsRoom

Envestnet Asset Management Inc. Buys 1,418 Shares of Tarsus Pharmaceuticals, Inc. $TARS

Nov -27

Source: defenseworld.net

Tarsus Pharmaceuticals: Xdemvy Momentum Continues In Q3

Nov -20

Source: seekingalpha.com

Campbell & CO Investment Adviser LLC Invests $416,000 in Tarsus Pharmaceuticals, Inc. $TARS

Nov -17

Source: defenseworld.net

Tarsus Pharmaceuticals, Inc. (TARS) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

Tarsus Pharmaceuticals, Inc. (TARS) Reports Q3 Loss, Beats Revenue Estimates

Nov -04

Source: zacks.com

Tarsus Reports Third Quarter 2025 Financial Results and Recent Business Achievements

Nov -04

Source: globenewswire.com

Tarsus to Report Third Quarter 2025 Financial Results on Tuesday, November 4, 2025

Oct -28

Source: globenewswire.com

Tarsus Pharmaceuticals: Considering If The Big Marketing Push Will Pay Off

Sep -26

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.50%)

6. Segments

Pharmaceutical Products

Expected Growth: 8.5%

Tarsus Pharmaceuticals, Inc.'s 8.5% growth in Pharmaceutical Products is driven by increasing demand for novel treatments, strategic partnerships, and expanding product portfolios. Additionally, growing investments in R&D, favorable regulatory environments, and rising healthcare expenditure contribute to this growth.

7. Detailed Products

TP-03

A novel, topical antiparasitic cream for the treatment of Demodex blepharitis, a chronic eyelid disease.

TP-04

A novel, oral, non-steroidal treatment for rosacea, a chronic inflammatory skin condition.

8. Tarsus Pharmaceuticals, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Tarsus Pharmaceuticals, Inc. is moderate due to the presence of alternative treatments and therapies for eye care.

Bargaining Power Of Customers

The bargaining power of customers for Tarsus Pharmaceuticals, Inc. is low due to the lack of negotiating power of individual customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Tarsus Pharmaceuticals, Inc. is moderate due to the presence of multiple suppliers for raw materials and equipment.

Threat Of New Entrants

The threat of new entrants for Tarsus Pharmaceuticals, Inc. is high due to the attractiveness of the eye care market and the potential for new companies to enter the market.

Intensity Of Rivalry

The intensity of rivalry for Tarsus Pharmaceuticals, Inc. is high due to the presence of established competitors in the eye care market.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	13.30%
Debt Cost	9.45%
Equity Weight	86.70%
Equity Cost	9.45%
WACC	9.45%
Leverage	15.34%

11. Quality Control: Tarsus Pharmaceuticals, Inc. passed 4 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Dianthus Therapeutics

A-Score: 4.6/10

Value: 6.4

Growth: 6.0

Quality: 5.0

Yield: 0.0

Momentum: 8.5

Volatility: 1.7

1-Year Total Return ->

Tarsus Pharmaceuticals

A-Score: 4.5/10

Value: 6.4

Growth: 3.2

Quality: 5.2

Yield: 0.0

Momentum: 9.0

Volatility: 3.3

1-Year Total Return ->

Champions Oncology

A-Score: 4.5/10

Value: 2.7

Growth: 7.0

Quality: 6.2

Yield: 0.0

Momentum: 9.5

Volatility: 1.7

1-Year Total Return ->

Kymera Therapeutics

A-Score: 3.8/10

Value: 6.4

Growth: 3.1

Quality: 4.9

Yield: 0.0

Momentum: 6.5

Volatility: 2.0

1-Year Total Return ->

Oncternal Therapeutics

A-Score: 3.1/10

Value: 9.2

Growth: 4.3

Quality: 3.3

Yield: 0.0

Momentum: 0.5

Volatility: 1.3

1-Year Total Return ->

TScan Therapeutics

A-Score: 2.7/10

Value: 7.2

Growth: 4.2

Quality: 4.4

Yield: 0.0

Momentum: 0.0

Volatility: 0.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

42.81%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.45%

Tarsus Pharmaceuticals, Inc. - US87650L1035

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on TARS

1.c. Company Highlights

Strong Momentum

Lower Growth

Fairly Valued

Earnings Beats

Revenues Beats

Average Yield

Revenues Miss

Average Quality

Stable Momentum

Medium Volatility

Earnings Miss

Average Growth

2. Tarsus Pharmaceuticals' Exceptional Q3 2025 Results: A Closer Look

Revenue Growth and Product Traction

Valuation and Growth Expectations

Operational Highlights and Future Outlook

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.50%)

6. Segments

Pharmaceutical Products

Expected Growth: 8.5%

7. Detailed Products

TP-03

TP-04

8. Tarsus Pharmaceuticals, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Tarsus Pharmaceuticals, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

81.77$

Current Price

81.77$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA