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Tarsus Pharmaceuticals (TARS)
NASDAQ:TARS
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Tarsus Pharmaceuticals
(NASDAQ:TARS)
49Neutral
Positive Factors
Market Coverage
Patient access to Xdemvy is now covered by over 90% of commercial, Medicare, and other plans, supporting further growth.
Sales Growth
The recent growth is attributed to the increased sales force and ongoing direct-to-consumer campaigns, suggesting future demand increase.
Negative Factors
Investor Concerns
Investors are concerned about cautious guidance on XDEMVY bottle volume and increased spending on marketing and R&D.
Tarsus Pharmaceuticals (TARS) vs. S&P 500 (SPY)
Market Cap
$1.81B
Dividend YieldN/A
Average Volume (3M)585.66K
Price to Earnings (P/E)―
Beta (1Y)0.89
Revenue Growth948.62%
EPS Growth33.12%
CountryUS
Employees323
SectorHealthcare
Sector Strength78
IndustryBiotechnology
Share Statistics
EPS (TTM)-3.10
Shares Outstanding38,377,180
10 Day Avg. Volume612,896
30 Day Avg. Volume585,664
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)13.96
Price to Cash Flow (P/CF)-52.30
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 Upside43.59% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
Tarsus Pharmaceuticals Business Overview & Revenue Model
Company DescriptionTarsus Pharmaceuticals, Inc. is a biopharmaceutical company focused on the development and commercialization of therapeutic interventions for ophthalmic conditions, with an emphasis on addressing unmet needs in the eye care sector. The company's leading product, Xdemvy (lotilaner ophthalmic solution), is specifically designed to treat Demodex blepharitis, a prevalent eyelid condition caused by Demodex mites. Tarsus Pharmaceuticals leverages its innovative technology platform to advance its pipeline of targeted treatments for various infectious and inflammatory conditions.
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 demonstrates strong revenue growth and a solid equity base, yet struggles with profitability and cash flow generation. The absence of debt is a positive sign, but consistent losses and negative cash flows pose significant risks. The company needs to focus on improving operational efficiency and achieving profitability to ensure 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
47.10
Price Trends
49.70
Negative
48.49
Negative
38.99
Positive
Market Momentum
-1.29
Negative
49.73
Neutral
76.03
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 47.1 is above the 20-day moving average (MA) of 46.49, below the 50-day MA of 49.70, and above the 200-day MA of 38.99, indicating a neutral trend. The MACD of -1.29 indicates Negative momentum. The RSI at 49.73 is Neutral, neither overbought nor oversold. The STOCH value of 76.03 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 83 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 (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
58 Neutral | $5.31B | ― | -76.51% | ― | ― | -213.94% | |
52 Neutral | $1.35B | ― | -95.21% | ― | 9.03% | -25.00% | |
49 Neutral | $1.81B | ― | -54.83% | ― | 948.62% | 33.12% | |
49 Neutral | $6.90B | 0.02 | -54.05% | 2.46% | 24.91% | -3.14% | |
48 Neutral | $503.78M | ― | -43.42% | ― | -5.97% | -25.87% | |
44 Neutral | $154.12M | ― | -200.65% | ― | 303.87% | -40.33% | |
32 Underperform | $875.43M | ― | -54.14% | ― | ― | 6.99% |
* Healthcare Sector Average
Performance Comparison
TARS
Tarsus Pharmaceuticals
46.47
17.04
57.90%
EYPT
EyePoint Pharmaceuticals
6.83
-14.91
-68.58%
OCUL
Ocular Therapeutix
7.88
-1.38
-14.90%
RCKT
Rocket Pharmaceuticals
8.50
-18.78
-68.84%
VRNA
Verona Pharma
65.36
49.82
320.59%
SCPH
scPharmaceuticals
2.99
-2.31
-43.58%
Tarsus Pharmaceuticals Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: 3.43% | 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.