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Tarsus Pharmaceuticals (TARS)
NASDAQ:TARS
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Tarsus Pharmaceuticals
(NASDAQ:TARS)
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Rating:59Neutral
Price Target:
$68.00
▲(0.65% Upside)
Tarsus Pharmaceuticals' overall stock score is driven by strong earnings call insights and technical momentum, despite financial performance challenges and valuation concerns. The company's growth potential and strategic initiatives are significant positives, but profitability and cash flow issues need addressing.
Positive Factors
Revenue Growth
Strong revenue growth indicates successful market penetration and product adoption, enhancing long-term business sustainability and market presence.
Global Expansion Plans
Global expansion efforts, including regulatory progress in Japan and Europe, position Tarsus for increased market share and diversified revenue streams.
Strong Financial Position
A strong financial position with high gross margins and substantial cash reserves provides Tarsus with the flexibility to invest in growth and innovation.
Negative Factors
Profitability Challenges
Ongoing profitability issues, reflected in negative net profit and EBIT margins, could hinder long-term financial sustainability and shareholder returns.
High SG&A Expenses
Rising SG&A expenses may pressure margins and profitability, requiring careful cost management to maintain financial health as the company scales.
Cash Flow Challenges
Negative operating and free cash flows indicate potential liquidity constraints, impacting the company's ability to fund operations and growth initiatives.
Tarsus Pharmaceuticals (TARS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.79B
Dividend YieldN/A
Average Volume (3M)654.27K
Price to Earnings (P/E)―
Beta (1Y)0.62
Revenue Growth254.45%
EPS Growth48.06%
CountryUS
Employees323
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.48
Shares Outstanding42,214,108
10 Day Avg. Volume563,587
30 Day Avg. Volume654,271
Financial Highlights & Ratios
PEG Ratio0.54
Price to Book (P/B)9.27
Price to Sales (P/S)11.38
P/FCF Ratio-24.61
Enterprise Value/Market Cap0.50
Enterprise Value/Revenue4.76
Enterprise Value/Gross Profit5.10
Enterprise Value/Ebitda-16.56
Forecast
1Y Price Target
$83.40Price Target Upside23.45% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Tarsus Pharmaceuticals Business Overview & Revenue Model
Company DescriptionTarsus Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company focused on developing innovative therapies for the treatment of eye diseases. The company primarily operates within the ophthalmology sector, with a focus on addressing unmet medical needs through its proprietary product candidates. Tarsus is advancing its lead product, TP-03, aimed at treating Demodex blepharitis, a condition affecting the eyelids and eyelashes, and is exploring additional indications in the ophthalmic space.
How the Company Makes MoneyTarsus Pharmaceuticals generates revenue primarily through the development and commercialization of its pharmaceutical products. The company's revenue model is centered around bringing its lead product, TP-03, to market, which includes potential sales from prescriptions once it receives regulatory approval. Furthermore, Tarsus may engage in strategic partnerships with larger pharmaceutical companies for co-development and commercialization agreements, which can provide upfront payments, milestone payments, and royalties on future sales. The company may also generate revenue through grants or funding from research initiatives. As it advances its clinical programs and potentially secures regulatory approvals, Tarsus aims to establish a stream of income through direct product sales and collaborations.
Tarsus Pharmaceuticals Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call reflects strong sales performance and successful marketing efforts, indicating significant growth and expansion potential for XDEMVY. While there are challenges in managing expenses and gross-to-net improvements, the positive aspects, including financial stability and strategic pipeline development, outweigh the negatives.Q2-2025 Updates
Positive Updates
Record-Breaking Sales
In Q2, Tarsus delivered over $100 million in net sales and dispensed approximately 91,000 bottles, marking a 30% sequential quarterly revenue growth.
Successful Direct-to-Consumer Campaign
The DTC campaign significantly increased prescription volumes and awareness, with unaided awareness of XDEMVY tripling and website interactions up nearly 400%.
High Prescriber Engagement
Over 20,000 Eye Care Professionals (ECPs) are now prescribing XDEMVY, with 80% treating across all Demodex blepharitis patient segments.
Strong Financial Position
Gross margins remained flat at 93%, with cash and cash equivalents at approximately $381 million at quarter-end.
Global Expansion Plans
Meetings with regulatory authorities in Japan are on track, and potential European regulatory approval for a preservative-free formulation of XDEMVY is expected in 2027.
Negative Updates
High SG&A Expenses
SG&A expenses increased by approximately $44 million, primarily driven by sales and marketing costs to support the XDEMVY launch.
Challenging Gross-to-Net Improvements
The gross-to-net discount is expected to remain in the low 40s, with limited room for further improvement due to the current payer environment.
Company Guidance
During Tarsus' Q2 2025 earnings call, the company highlighted several key metrics demonstrating strong performance and growth potential. XDEMVY, the FDA-approved treatment for Demodex blepharitis, achieved over $100 million in net sales with approximately 91,000 bottles dispensed, reflecting significant quarter-over-quarter growth. The direct-to-consumer (DTC) campaign has been a catalyst for growth, evident in the tripling of unaided awareness and a 400% increase in website interactions. Tarsus reported over 20,000 eye care professionals (ECPs) prescribing XDEMVY, with 80% of surveyed ECPs treating across all Demodex blepharitis patient segments. Financially, the gross-to-net discount improved to approximately 45%, with expectations to reach the low 40s by year-end 2025. The company ended the quarter with $381 million in cash and cash equivalents. Looking ahead, Tarsus plans to expand XDEMVY's reach globally and has a promising pipeline, including the TP-04 program for ocular rosacea, set to enter Phase II trials later in the year.Tarsus Pharmaceuticals Financial Statement Overview
Summary
Tarsus Pharmaceuticals shows strong revenue growth with a 26.47% increase in the TTM period, indicating positive momentum. However, the company is facing significant profitability challenges, with negative net profit and EBIT margins. The gross profit margin remains high at 93.36%, reflecting efficient cost management relative to revenue. Overall, while revenue growth is promising, the persistent losses highlight ongoing operational challenges.Income Statement
Tarsus Pharmaceuticals shows strong revenue growth with a 26.47% increase in the TTM period, indicating positive momentum. However, the company is facing significant profitability challenges, with negative net profit and EBIT margins. The gross profit margin remains high at 93.36%, reflecting efficient cost management relative to revenue. Overall, while revenue growth is promising, the persistent losses highlight ongoing operational challenges.45
Neutral
Balance Sheet
The company's balance sheet is relatively stable, with a low debt-to-equity ratio of 0.22, indicating conservative leverage. However, the return on equity is negative, reflecting the company's inability to generate profits from shareholders' equity. The equity ratio is healthy, suggesting a solid capital structure. While the low leverage is a strength, the negative ROE points to profitability issues.50
Neutral
Cash Flow
Cash flow analysis reveals a challenging situation with negative operating and free cash flows, although there is a positive free cash flow growth rate of 20.51% in the TTM period. The operating cash flow to net income ratio is negative, indicating cash flow issues relative to net income. Despite some improvement in free cash flow, the overall cash flow position remains weak.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 295.52M | 182.95M | 17.45M | 25.82M | 57.03M | 0.00 |
| Gross Profit | 275.90M | 170.13M | 15.85M | 24.86M | 54.95M | -246.00K |
| EBITDA | -84.97M | -106.48M | -131.67M | -59.11M | -13.17M | -26.56M |
| Net Income | -91.99M | -115.55M | -135.89M | -62.09M | -13.83M | -26.81M |
Balance Sheet | ||||||
| Total Assets | 494.99M | 376.99M | 265.49M | 227.86M | 178.91M | 171.97M |
| Cash, Cash Equivalents and Short-Term Investments | 381.14M | 291.38M | 227.44M | 217.03M | 171.81M | 168.13M |
| Total Debt | 72.45M | 72.45M | 31.73M | 20.16M | 1.89M | 831.00K |
| Total Liabilities | 162.38M | 152.46M | 68.50M | 34.96M | 12.18M | 5.99M |
| Stockholders Equity | 332.61M | 224.53M | 196.99M | 192.90M | 166.73M | 165.98M |
Cash Flow | ||||||
| Free Cash Flow | -87.82M | -84.59M | -123.00M | -49.54M | 3.16M | -21.59M |
| Operating Cash Flow | -80.87M | -83.03M | -117.49M | -49.03M | 3.75M | -21.14M |
| Investing Cash Flow | -143.09M | -199.19M | 140.60M | -144.63M | -586.00K | -456.00K |
| Financing Cash Flow | 142.08M | 154.66M | 130.18M | 93.99M | 21.00K | 131.77M |
Tarsus Pharmaceuticals Technical Analysis
Positive
67.56
Price Trends
60.83
Positive
51.79
Positive
49.74
Positive
Market Momentum
2.60
Positive
54.91
Neutral
17.03
Positive
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 67.56 is below the 20-day moving average (MA) of 68.58, above the 50-day MA of 60.83, and above the 200-day MA of 49.74, indicating a neutral trend. The MACD of 2.60 indicates Positive momentum. The RSI at 54.91 is Neutral, neither overbought nor oversold. The STOCH value of 17.03 is Positive, 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $2.79B | ― | -31.46% | ― | 254.45% | 48.06% | |
| ― | $2.41B | ― | -28.17% | ― | 129.21% | 80.35% | |
| ― | $2.63B | ― | -86.34% | ― | 30.14% | -10.08% | |
| ― | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
| ― | $2.83B | ― | -41.94% | ― | -82.90% | -155.64% | |
| ― | $2.33B | -5.68 | -39.69% | ― | -100.00% | 1.62% | |
| ― | $3.20B | ― | -26.36% | ― | ― | -22.19% |
* Healthcare Sector Average
TARS
Tarsus Pharmaceuticals
67.56
22.83
51.04%
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Tarsus Pharmaceuticals Corporate Events
Executive/Board ChangesShareholder Meetings
Tarsus Pharmaceuticals Holds Annual Stockholders Meeting
Neutral
Jun 18, 2025
On June 12, 2025, Tarsus Pharmaceuticals, Inc. held its Annual Meeting of Stockholders where several key proposals were voted upon. The stockholders elected two Class II directors, approved executive compensation on a non-binding basis, decided on an annual frequency for future compensation votes, and ratified Ernst & Young LLP as the independent auditor for the fiscal year ending December 31, 2025.
The most recent analyst rating on (TARS) stock is a Buy with a $73.00 price target. To see the full list of analyst forecasts on Tarsus Pharmaceuticals stock, see the TARS Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.