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Tarsus Pharmaceuticals (TARS)
NASDAQ:TARS
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Tarsus Pharmaceuticals
(NASDAQ:TARS)
54Neutral
Positive Factors
Earnings
Tarsus Pharmaceuticals reported Q1 2025 earnings beating consensus estimates with Xdemvy revenues of $78.3M.
Market Penetration
The increase in Xdemvy prescriptions and surpassing the initial target prescriber base indicates robust demand and market penetration.
Negative Factors
Investor Concerns
Investors are concerned about cautious guidance on XDEMVY bottle volume and increased spending on marketing and R&D.
Risk Profile
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
$1.99B
Dividend YieldN/A
Average Volume (3M)723.56K
Price to Earnings (P/E)―
Beta (1Y)0.76
Revenue Growth449.03%
EPS Growth42.86%
CountryUS
Employees323
SectorHealthcare
Sector Strength56
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.64
Shares Outstanding42,014,236
10 Day Avg. Volume793,109
30 Day Avg. Volume723,564
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.85
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit9.91
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$68.38Price Target Upside44.38% 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 and a solid equity base but struggles with profitability and cash flow. The absence of debt is a positive sign, though consistent losses and negative cash flows pose risks.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.―
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
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.―
| 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 |
| -106.48M | -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
Negative
47.36
Price Trends
47.85
Positive
49.82
Negative
42.50
Positive
Market Momentum
0.24
Positive
46.60
Neutral
22.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TARS, the sentiment is Negative. The current price of 47.36 is below the 20-day moving average (MA) of 48.56, below the 50-day MA of 47.85, and above the 200-day MA of 42.50, indicating a neutral trend. The MACD of 0.24 indicates Positive momentum. The RSI at 46.60 is Neutral, neither overbought nor oversold. The STOCH value of 22.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $2.11B | 48.01 | -0.53% | ― | 27.28% | -101.63% | |
55 Neutral | $2.16B | ― | -37.08% | ― | 80.76% | 53.98% | |
54 Neutral | $1.99B | ― | -33.98% | ― | 449.03% | 42.86% | |
52 Neutral | $5.35B | 3.81 | -42.57% | 2.86% | 17.10% | 1.33% | |
49 Neutral | $2.34B | ― | -33.22% | ― | ― | -94.92% | |
40 Underperform | $2.33B | ― | -198.83% | ― | ― | -65.63% |
* Healthcare Sector Average
Performance Comparison
TARS
Tarsus Pharmaceuticals
48.00
10.97
29.62%
LGND
Ligand Pharma
109.39
36.56
50.20%
MIRM
Mirum Pharmaceuticals
44.15
17.76
67.30%
BHVN
Biohaven Ltd.
22.62
-18.57
-45.08%
APGE
Apogee Therapeutics
40.12
-14.19
-26.13%
AAPG
Ascentage Pharma Group International Unsponsored ADR
25.30
8.05
46.67%
Tarsus Pharmaceuticals Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: -5.84%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call reflects strong growth and strategic positioning of Tarsus, with significant achievements in sales, financing, and market expansion. While there are operational challenges and increased expenses, the overall outlook remains positive due to strong demand and strategic initiatives.Q1-2025 Updates
Positive Updates
Remarkable Sales Growth of XDEMVY
XDEMVY sales surpassed $78 million in the first quarter, marking a year-over-year increase of 217%, driven by approximately 72,000 bottles dispensed.
Significant Equity Financing
The company secured approximately $135 million through an oversubscribed and upsized equity financing, indicating strong shareholder confidence.
Global Expansion Opportunities
Tarsus is exploring global opportunities for XDEMVY, with potential European regulatory approval on track for 2027 and ongoing discussions for entry into the Japanese market.
Strong Commercial and Medicare Coverage
More than 90% of commercial and Medicare lives are covered, reducing hurdles for physician adoption and increasing patient access.
Positive Impact of DTC Campaign
Direct-to-consumer advertising increased average weekly website visits by 140% and drove thousands of patients to take the DB quiz weekly.
Negative Updates
Typical Quarterly Headwinds
The first quarter faced challenges such as the annual resetting of deductibles, holidays, and medical meetings, though results still exceeded expectations.
Increased Operating Expenses
Operating expenses rose to approximately $104.6 million due to increased direct-to-consumer advertising and related marketing costs.
Potential Tariff Impact
While currently not impacting gross margins, potential future tariffs could pose challenges, although the impact is expected to be insignificant.
Company Guidance
In the Tarsus First Quarter 2025 Earnings Conference Call, key metrics highlighted include a significant sales growth for XDEMVY, with over $78 million in sales, marking a 217% increase year-over-year. Approximately 72,000 bottles were dispensed, driven by strong execution and market expansion efforts. The company also reported a gross margin of around 93% and a gross to net discount of approximately 47%. Tarsus ended the quarter with $407.9 million in cash and cash equivalents, bolstered by a recent $135 million equity raise. The call outlined plans for a Phase 2 trial for TP-04 in Ocular Rosacea, while emphasizing the impact of their direct-to-consumer campaign, which increased website visits by 140% from December 2024 to March 2025. Additionally, they have secured more than 90% coverage for commercial and Medicare lives, facilitating broader patient access.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.