Tarsus Drops 10% to $57.08 After Culper Announces Short Position
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Tarsus drops 10% to $57.08 after Culper announces short position
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Analyst Views on TARS
Wall Street analysts forecast TARS stock price to rise
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 67.050
Low
68.00
Averages
89.33
High
100.00
Current: 67.050
Low
68.00
Averages
89.33
High
100.00
About TARS
Tarsus Pharmaceuticals, Inc. is a commercial-stage biopharmaceutical company. The Company is focused on the development and commercialization of therapeutics, starting with eye care. The Company’s lead product candidate, XDEMVY, is a lotilaner ophthalmic solution that targets and eradicates the root cause of Demodex blepharitis, Demodex mite infestation. The active pharmaceutical ingredient (API) of XDEMVY, lotilaner, paralyzes and eradicates mites and other parasites through the inhibition of parasite-specific gamma-aminobutyric acid-gated chloride channels. The Company is investigating the development of its product candidates to address targeted diseases with high unmet medical needs, which include TP-04, a novel ophthalmic gel formulation of lotilaner for the potential treatment of Ocular Rosacea, and TP-05, a novel investigational oral formulation of lotilaner, for potential Lyme disease prophylaxis and community malaria reduction.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Trinity Industries Sees Surge in Options Trading Volume
- Surge in Options Volume: Trinity Industries, Inc. (TRN) recorded an options trading volume of 5,324 contracts today, equating to approximately 532,400 shares, which represents about 65.8% of its average daily trading volume of 809,620 shares over the past month, indicating heightened market interest in its future performance.
- High-Frequency Trading Insight: Notably, the $34 strike put option has seen significant activity with 4,191 contracts traded today, representing around 419,100 underlying shares of TRN, reflecting investor expectations regarding potential downside risks for the stock.
- Cohen & Steers Options Activity: Concurrently, Cohen & Steers Inc. (CNS) has reported an options trading volume of 2,144 contracts today, approximately 214,400 shares, which constitutes 64.4% of its average daily trading volume of 332,955 shares over the past month, showcasing active market engagement.
- Bullish Call Options Interest: The $80 strike call option for CNS has recorded 1,344 contracts traded today, representing about 134,400 shares, indicating investor confidence in the stock's potential for future appreciation, which may influence its price trajectory.
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- Stock Surge: Tarsus Pharmaceuticals (TARS) shares rose 7.5% to $65.44 in the last trading session, with significantly higher trading volume indicating increased investor confidence in the company's prospects.
- Strong Product Sales: Xdemvy (lotilaner ophthalmic solution) achieved net sales of $145.4 million in Q1 2026, reflecting over 85% year-over-year growth, driven by broader screening and prescribing by eye care professionals across a wider patient base.
- Global Expansion Plans: Tarsus received regulatory approval for Xdemvy in China, triggering a $15 million milestone payment, while ongoing regulatory progress in Europe and Japan supports the product's long-term commercial opportunities, highlighting its potential for global market expansion.
- Pipeline Development: The company is evaluating TP-04 and TP-05 in mid-stage studies for treating ocular rosacea and Lyme disease, with topline data expected in the first half of 2027, further enhancing investor confidence in its future growth trajectory.
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- Short Seller Allegations: Culper Research has accused Tarsus Pharmaceuticals of using questionable practices to boost sales of its sole product, XDEMVY, resulting in a 5% drop in stock price on Wednesday, potentially marking its worst day since April.
- Medicare Copay Scheme: Culper claims Tarsus has funded copay assistance for Medicare patients through the HealthWell Foundation, with donations of $5.7 million in 2023 and an expected $31.2 million in 2024, arguing this violates the Anti-Kickback Statute and poses legal risks.
- Inflated Market Size: Tarsus has touted a 25 million patient opportunity for Demodex blepharitis, but a survey indicates only 18% of patients are diagnosed, leading Culper to estimate a true market size closer to 5 million, with peak annual revenues for XDEMVY projected below $800 million.
- Financial Guidance Downgrade: Culper asserts that Tarsus is likely to miss its 2026 guidance, as analysts have underestimated rising patient assistance and other SG&A costs, which could lead to further declines in stock price in the future.
See More
Tarsus Pharmaceuticals Shares Drop Amid Short Report
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- Short Interest: Culper Research disclosed its short position in Tarsus, with a current short interest of 11.6%, reflecting negative market sentiment towards the stock and potentially leading to further price volatility.
- Market Reaction: Tarsus did not promptly respond to Seeking Alpha's request for comment, and this lack of transparency may exacerbate investor anxiety, affecting its reputation and market position in the healthcare sector.
- Sales Guidance: Despite facing short-term pressures, Tarsus reiterated its 2026 net product sales guidance of $670 million to $700 million, indicating the company's confidence in future performance, which may provide some support for investors.
See More
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- High Volume Insights: Notably, the $180 strike call option for LYV saw a significant trading volume of 5,041 contracts today, representing around 504,100 underlying shares, suggesting investor expectations for a price increase.
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- Put Option Activity: Among RIOT's options, the $27 strike put option recorded a trading volume of 13,168 contracts today, representing approximately 1.3 million underlying shares, indicating market concerns regarding potential future declines.
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- Surge in Options Volume: Trinity Industries, Inc. (TRN) recorded an options trading volume of 5,324 contracts today, equating to approximately 532,400 shares, which represents about 65.8% of its average daily trading volume of 809,620 shares over the past month, indicating heightened market interest in its future performance.
- High-Frequency Trading Insight: Notably, the $34 strike put option has seen significant activity with 4,191 contracts traded today, representing around 419,100 underlying shares of TRN, reflecting investor expectations regarding potential downside risks for the stock.
- Cohen & Steers Options Activity: Concurrently, Cohen & Steers Inc. (CNS) has reported an options trading volume of 2,144 contracts today, approximately 214,400 shares, which constitutes 64.4% of its average daily trading volume of 332,955 shares over the past month, showcasing active market engagement.
- Bullish Call Options Interest: The $80 strike call option for CNS has recorded 1,344 contracts traded today, representing about 134,400 shares, indicating investor confidence in the stock's potential for future appreciation, which may influence its price trajectory.
See More
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- Stock Surge: Tarsus Pharmaceuticals (TARS) shares rose 7.5% to $65.44 in the last trading session, with significantly higher trading volume indicating increased investor confidence in the company's prospects.
- Strong Product Sales: Xdemvy (lotilaner ophthalmic solution) achieved net sales of $145.4 million in Q1 2026, reflecting over 85% year-over-year growth, driven by broader screening and prescribing by eye care professionals across a wider patient base.
- Global Expansion Plans: Tarsus received regulatory approval for Xdemvy in China, triggering a $15 million milestone payment, while ongoing regulatory progress in Europe and Japan supports the product's long-term commercial opportunities, highlighting its potential for global market expansion.
- Pipeline Development: The company is evaluating TP-04 and TP-05 in mid-stage studies for treating ocular rosacea and Lyme disease, with topline data expected in the first half of 2027, further enhancing investor confidence in its future growth trajectory.
See More
Tarsus Accused of Market Manipulation by Culper Research
- Short Seller Allegations: Culper Research has accused Tarsus Pharmaceuticals of using questionable practices to boost sales of its sole product, XDEMVY, resulting in a 5% drop in stock price on Wednesday, potentially marking its worst day since April.
- Medicare Copay Scheme: Culper claims Tarsus has funded copay assistance for Medicare patients through the HealthWell Foundation, with donations of $5.7 million in 2023 and an expected $31.2 million in 2024, arguing this violates the Anti-Kickback Statute and poses legal risks.
- Inflated Market Size: Tarsus has touted a 25 million patient opportunity for Demodex blepharitis, but a survey indicates only 18% of patients are diagnosed, leading Culper to estimate a true market size closer to 5 million, with peak annual revenues for XDEMVY projected below $800 million.
- Financial Guidance Downgrade: Culper asserts that Tarsus is likely to miss its 2026 guidance, as analysts have underestimated rising patient assistance and other SG&A costs, which could lead to further declines in stock price in the future.
See More
Tarsus Pharmaceuticals Shares Drop Amid Short Report
- Stock Price Decline: Tarsus Pharmaceuticals (TARS) shares fell 7.8% following a short report from Culper Research, indicating market concerns about its future performance, which could negatively impact investor confidence and company valuation.
- Short Interest: Culper Research disclosed its short position in Tarsus, with a current short interest of 11.6%, reflecting negative market sentiment towards the stock and potentially leading to further price volatility.
- Market Reaction: Tarsus did not promptly respond to Seeking Alpha's request for comment, and this lack of transparency may exacerbate investor anxiety, affecting its reputation and market position in the healthcare sector.
- Sales Guidance: Despite facing short-term pressures, Tarsus reiterated its 2026 net product sales guidance of $670 million to $700 million, indicating the company's confidence in future performance, which may provide some support for investors.
See More
Live Nation and Riot Platforms See Active Options Trading
- Live Nation Options Activity: Live Nation Entertainment Inc (LYV) recorded an options trading volume of 13,953 contracts today, equating to approximately 1.4 million shares or about 53.1% of its average daily trading volume of 2.6 million shares over the past month, indicating heightened market interest in its future performance.
- High Volume Insights: Notably, the $180 strike call option for LYV saw a significant trading volume of 5,041 contracts today, representing around 504,100 underlying shares, suggesting investor expectations for a price increase.
- Riot Platforms Options Trends: Concurrently, Riot Platforms Inc (RIOT) experienced an options trading volume of 78,702 contracts, translating to approximately 7.9 million shares or about 51.2% of its average daily trading volume of 15.4 million shares over the past month, reflecting strong investor interest in the company.
- Put Option Activity: Among RIOT's options, the $27 strike put option recorded a trading volume of 13,168 contracts today, representing approximately 1.3 million underlying shares, indicating market concerns regarding potential future declines.
See More
Achieve Life Sciences Appoints New Board Members Ahead of Cytisinicline Launch
- New Board Members: Achieve Life Sciences has appointed Jeffrey Farrow and Reid Waldman to its Board of Directors, with Farrow bringing over $9 billion in acquisition experience in the biopharmaceutical sector and Waldman as the founder of Veradermics, both poised to provide strategic guidance for the upcoming NDA resubmission.
- Significant Market Potential: Farrow highlighted the large and underserved market for smoking dependence, with Cytisinicline expected to fill this gap as the first new prescription smoking cessation medication in nearly two decades, addressing the needs of approximately 25 million adult smokers in the U.S.
- Clinical Data Support: Waldman emphasized the encouraging results of Cytisinicline in clinical trials, particularly for e-cigarette cessation, indicating that the drug could become a new tool for nicotine dependence treatment, addressing the urgent needs of young patients and driving innovation in the biopharmaceutical field.
- Strategic Development Direction: Achieve Life Sciences' NDA application has received FDA Breakthrough Therapy designation, and with the extensive experience of the new board members, the company is advancing towards a successful launch of Cytisinicline, which is expected to create substantial value for both patients and shareholders.
See More
