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Tarsus Pharmaceuticals (TARS)
NASDAQ:TARS
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Tarsus Pharmaceuticals
(NASDAQ:TARS)
54Neutral
Positive Factors
Market Expansion and Growth
Expanded Xdemvy coverage is expected to continue driving growth as it provides a more seamless treatment experience for patients and increases physician confidence.
Product Launch and Sales
The launch of Xdemvy in Demodex blepharitis is experiencing steady progress after expected seasonal weaknesses.
Negative Factors
Investor Concerns
Investors are concerned about cautious guidance on XDEMVY bottle volume and increased spending on marketing and R&D.
Risk Factors
Concerns about the risk-profile of the TP-05 development for Lyme disease prevention are affecting investor sentiment.
Tarsus Pharmaceuticals (TARS) vs. S&P 500 (SPY)
Market Cap
$1.93B
Dividend YieldN/A
Average Volume (3M)684.99K
Price to Earnings (P/E)―
Beta (1Y)0.83
Revenue Growth948.62%
EPS Growth33.12%
CountryUS
Employees323
SectorHealthcare
Sector Strength71
IndustryBiotechnology
Share Statistics
EPS (TTM)-3.10
Shares Outstanding41,607,513
10 Day Avg. Volume750,586
30 Day Avg. Volume684,987
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)14.79
Price to Cash Flow (P/CF)-55.40
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$67.63Price Target Upside45.66% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
Tarsus Pharmaceuticals Business Overview & Revenue Model
Company DescriptionTarsus 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.
How the Company Makes MoneyTarsus Pharmaceuticals generates revenue primarily through the commercialization of its flagship product, Xdemvy, targeting the niche market of Demodex blepharitis treatment. Revenue is derived from product sales, including direct sales to healthcare providers and partnerships with distributors and pharmaceutical companies. The company also explores strategic collaborations and licensing agreements to expand its market reach and enhance its product offerings, thereby contributing to its revenue streams. Key factors influencing its earnings include market adoption of Xdemvy, regulatory approvals, and the successful development and commercialization of pipeline products.
Tarsus Pharmaceuticals Financial Statement Overview
Summary
Tarsus Pharmaceuticals shows strong revenue growth but struggles with profitability and cash flow generation. The absence of debt is positive, yet consistent losses and negative cash flows pose risks. Improving operational efficiency and achieving profitability is crucial for long-term viability.Income Statement
Tarsus Pharmaceuticals' revenue shows substantial growth over the years, especially between 2023 and 2024. However, the company consistently reports a negative net income, indicating ongoing challenges with profitability. The gross profit margin is relatively high, signaling efficient production, but negative EBIT and EBITDA margins reflect high operational and administrative costs. The net profit margin remains negative, highlighting ongoing financial struggles.45
Neutral
Balance Sheet
The company's balance sheet shows a strong equity base with no debt in the latest year, which is positive for financial stability. However, the equity ratio has been declining, indicating an increase in liabilities relative to assets. Return on equity is negative due to continuous net losses, suggesting poor profitability despite a robust capital structure.50
Neutral
Cash Flow
Tarsus Pharmaceuticals has experienced negative operating and free cash flow, reflecting challenges in generating cash from operations. Free cash flow has grown negatively over the period, indicating increased financial strain. The company's reliance on financing activities to support cash flow is evident, which could pose risks if capital markets become less favorable.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 182.95M | 17.45M | 25.82M | 57.03M | 0.00 | Gross Profit |
| 170.13M | 15.85M | 24.86M | 54.95M | -246.00K | EBIT |
| -120.57M | -143.16M | -62.71M | -12.16M | -27.00M | EBITDA |
| -106.88M | -131.67M | -59.11M | -13.17M | -26.56M | Net Income Common Stockholders |
| -115.55M | -135.89M | -62.09M | -13.83M | -26.81M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 291.38M | 227.44M | 217.03M | 171.81M | 168.13M | Total Assets |
| 376.99M | 265.49M | 227.86M | 178.91M | 171.97M | Total Debt |
| 72.45M | 31.73M | 20.16M | 1.89M | 831.00K | Net Debt |
| -22.37M | -193.22M | -51.51M | -169.44M | -167.30M | Total Liabilities |
| 152.46M | 68.50M | 34.96M | 12.18M | 5.99M | Stockholders Equity |
| 224.53M | 196.99M | 192.90M | 166.73M | 165.98M |
| Cash Flow | Free Cash Flow | |||
| -84.59M | -123.00M | -49.54M | 3.16M | -21.59M | Operating Cash Flow |
| -83.03M | -117.49M | -49.03M | 3.75M | -21.14M | Investing Cash Flow |
| -199.19M | 140.60M | -144.63M | -586.00K | -456.00K | Financing Cash Flow |
| 154.66M | 130.18M | 93.99M | 21.00K | 131.77M |
Tarsus Pharmaceuticals Technical Analysis
Positive
46.43
Price Trends
48.50
Positive
49.76
Negative
40.99
Positive
Market Momentum
-0.48
Positive
51.58
Neutral
51.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TARS, the sentiment is Positive. The current price of 46.43 is below the 20-day moving average (MA) of 48.91, below the 50-day MA of 48.50, and above the 200-day MA of 40.99, indicating a neutral trend. The MACD of -0.48 indicates Positive momentum. The RSI at 51.58 is Neutral, neither overbought nor oversold. The STOCH value of 51.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TARS.
Tarsus Pharmaceuticals Risk Analysis
Tarsus Pharmaceuticals disclosed 81 risk factors in its most recent earnings report. Tarsus Pharmaceuticals reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Tarsus Pharmaceuticals Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $2.01B | 48.01 | -0.53% | ― | 27.28% | -101.63% | |
54 Neutral | $1.93B | ― | -54.83% | ― | 948.62% | 33.12% | |
48 Neutral | $1.94B | ― | -37.08% | ― | 80.76% | 53.98% | |
48 Neutral | $6.46B | 1.17 | -48.25% | 2.67% | 19.50% | 0.61% | |
42 Neutral | $1.89B | ― | -33.22% | ― | ― | -94.92% | |
25 Underperform | $1.80B | ― | -198.83% | ― | ― | -65.63% |
* Healthcare Sector Average
Performance Comparison
TARS
Tarsus Pharmaceuticals
48.72
13.78
39.44%
LGND
Ligand Pharma
106.59
26.82
33.62%
MIRM
Mirum Pharmaceuticals
39.58
15.67
65.54%
BHVN
Biohaven Ltd.
18.51
-26.26
-58.66%
APGE
Apogee Therapeutics
33.28
-19.79
-37.29%
AAPG
Ascentage Pharma Group International Unsponsored ADR
20.49
3.24
18.78%
Tarsus Pharmaceuticals Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: 1.95% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call highlighted a year of strong financial performance and strategic advancements in Tarsus' pipeline, particularly with the success of XDEMVY and preparations for future product launches. However, challenges such as increased operational costs and anticipated headwinds in early 2025 were noted.Highlights
Record-Breaking Financial Performance
In 2024, Tarsus reported more than $180 million in net product sales for XDEMVY, with over 163,000 bottles delivered to patients.
Expanded Sales Force and Coverage
The sales force was expanded from 100 to 150 representatives, leading to more than 15,000 eye care physicians prescribing XDEMVY. Coverage now extends to over 90% of potential patient lives.
Positive Pipeline Developments
Significant progress in advancing the pipeline, including plans for a Phase 2 trial of TP-04 for Ocular Rosacea and a clear regulatory path for TP-05 in Lyme disease prevention.
Successful Direct-to-Consumer Campaign
The launch of a direct-to-consumer advertising campaign, including network TV placements, has generated increased patient engagement and visits to eye care professionals.
High Gross Margins
Tarsus reported gross margins of approximately 93%, showcasing effective cost management alongside strong sales performance.
Lowlights
Increased Operating Expenses
Total operating expenses reached approximately $303.5 million, driven primarily by commercial and marketing costs for XDEMVY.
Challenges in Early 2025
Expected headwinds in Q1 2025 due to higher patient out-of-pocket costs, holiday impacts, and natural disasters affecting prescriptions.
High Gross-to-Net Discount
The gross-to-net discount is expected to be higher in Q1 2025, ranging from 46% to 49%, before improving to a steady state by year-end.
Company Guidance
In the 2024 financial results call, Tarsus reported $180.1 million in net product sales for XDEMVY, with more than 163,000 bottles delivered. The sales force was expanded from 100 to 150 representatives, leading to over 15,000 eye care physicians prescribing the product. XDEMVY achieved over 90% commercial and Medicare coverage, with a gross-to-net discount of approximately 45%. The company plans continued investment in a direct-to-consumer advertising campaign, which is expected to cost $60 to $70 million annually. Tarsus also announced plans to advance their pipeline with a Phase 2 trial for TP-04 in Ocular Rosacea and the potential for a Phase 2 study of TP-05 for Lyme disease prevention in 2026, aiming for a steady-state gross-to-net discount in the low 40s by the end of 2025.Tarsus Pharmaceuticals Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Tarsus Pharmaceuticals Appoints New Chief Medical Officer
Positive
Nov 5, 2024
Tarsus Pharmaceuticals appointed Elizabeth Yeu, M.D. as Chief Medical Officer, effective November 4, 2024. Dr. Yeu, a prominent figure in ophthalmology, resigns from the board to focus on her new role. Her compensation package includes a base salary, bonuses, and stock options. The agreement also outlines severance and change in control benefits, ensuring security in her position. This strategic move highlights the company’s commitment to advancing its medical leadership.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.