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01/11 18:39
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights strong financial performance with a 217% increase in XDEMVY sales and robust cash reserves. The direct-to-consumer campaign and expanded sales force are driving growth, and the company is pursuing global opportunities despite regulatory risks. While increased marketing and R&D expenses could impact profitability, the equity financing reflects market confidence. The Q&A session reveals positive feedback from doctors and no significant disruptions in regulatory meetings. Although long-range guidance is not provided, the overall sentiment is positive due to strong sales growth and strategic initiatives.
XDEMVY Sales $78.3 million, a year-over-year increase of 217%, driven by approximately 72,000 bottles dispensed to patients.
Gross to Net Discount Approximately 47%, reflecting excellent coverage and an adjustment to Medicare accrual, which reduced the discount by about 1% or $1.5 million.
Total Operating Expenses Approximately $104.6 million, an increase of $14 million compared to Q4 2024, driven primarily by XDEMVY direct-to-consumer advertising and related commercial costs.
Gross Margins Approximately 93%, remained relatively flat.
Cash and Cash Equivalents $407.9 million, including $134.8 million from recent equity raise.
DTC Marketing Costs Expected increase of $5 million to $10 million compared to Q1 2025, with full year 2025 costs anticipated to be in the range of $70 million to $80 million.
R&D Expenses for TP-04 Expected to cost between $7 million and $10 million, split between 2025 and 2026.
XDEMVY Sales: Generated more than $78 million in sales, a year-over-year increase of 217%, driven by approximately 72,000 bottles dispensed.
DTC Campaign: Innovative direct-to-consumer campaign expanded from streaming platforms to network television, increasing average weekly website visits by 140%.
TP-04 Development: Accelerating development of TP-04 for Ocular Rosacea, with a Phase 2 trial expected to initiate later this year.
Global Expansion: Exploring global potential of XDEMVY, particularly in Japan, with plans to meet regulatory authorities in the second half of 2025.
European Approval: On track for potential European regulatory approval of XDEMVY in 2027, as no Phase 3 study is required.
Sales Force Expansion: Expanded sales force leading to a 110% increase in ECPs writing more than one prescription per week.
Patient Access: Achieved over 90% coverage of commercial and Medicare lives, eliminating major roadblocks to physician adoption.
Equity Financing: Secured approximately $135 million in equity financing to strengthen financial position and support growth initiatives.
Increased Marketing Spend: Anticipating an increase in SG&A marketing costs by $5 million to $10 million to boost DTC activities.
Sales Growth Risks: Despite achieving over $78 million in sales for XDEMVY, the company faces risks from typical headwinds such as annual resetting of deductibles and impacts from holidays and medical meetings that could affect future sales.
Regulatory Risks: The company is pursuing global opportunities for XDEMVY, including potential regulatory meetings in Japan and Europe, which carry inherent risks related to approval timelines and requirements.
Supply Chain Risks: While the company has secured two years of active pharmaceutical ingredients (API) in the U.S. and additional supplies in Europe, there are risks associated with reliance on contract manufacturers, particularly in the context of potential tariffs.
Economic Factors: The recent equity financing of approximately $135 million reflects confidence in the company, but the current market environment poses challenges for fundraising and operational costs.
Marketing Costs: The company anticipates an increase in marketing costs by $5 million to $10 million for the second quarter, which could impact profitability if the expected growth does not materialize.
R&D Expenses: The planned initiation of the Phase 2 study for TP-04 in Ocular Rosacea is expected to cost between $7 million and $10 million, which could strain resources if not managed effectively.
XDEMVY Sales Growth: In Q1 2025, Tarsus generated over $78 million in XDEMVY sales, a 217% year-over-year increase.
Global Expansion Plans: Tarsus is exploring the global potential of XDEMVY, particularly in Japan and Europe, with potential regulatory approval in Europe expected by 2027.
Ocular Rosacea Development: Tarsus is advancing TP-04 for Ocular Rosacea, with plans to initiate a Phase 2 trial later this year.
Equity Financing: Tarsus secured approximately $135 million in equity financing to strengthen its financial position and support growth initiatives.
DTC Campaign Expansion: The company is expanding its direct-to-consumer advertising campaign to increase patient engagement and awareness.
Q2 2025 Revenue Expectations: Tarsus expects bottles dispensed to increase to 85,000 to 90,000 in Q2 2025, with a gross to net discount of 45% to 47%.
Full Year 2025 DTC Costs: DTC marketing costs are anticipated to be between $70 million to $80 million for the full year 2025.
R&D Expenses for TP-04: R&D expenses for the Phase 2 study of TP-04 are expected to be between $7 million and $10 million, split between 2025 and 2026.
Operating Expenses Increase: Tarsus anticipates an increase in SG&A marketing costs of $5 million to $10 million compared to Q1 2025.
Equity Financing: Tarsus secured approximately $135 million in equity financing.
Cash and Cash Equivalents: The company ended the first quarter with $407.9 million in cash and cash equivalents, which includes the $134.8 million from the recent equity raise.
The earnings call indicates strong growth in prescriptions and refill rates, with positive trends in doctor adoption and patient adherence. While operating expenses are expected to rise, the company's confidence in XDEMVY's potential and strategic DTC investments suggest sustainable growth. The Q&A section highlights robust market expansion and product development, despite some management hesitations on specifics. Overall, the positive momentum in prescriptions, strategic market expansion, and optimistic guidance on future growth, despite increased expenses, suggest a positive stock price movement in the near term.
The earnings call highlights strong financial performance, with a 217% YoY sales increase and stable gross margins. The DTC campaign is driving higher-than-expected patient engagement, and the company's financial position is robust with $381 million in cash. While SG&A and R&D expenses have risen, they support growth initiatives. The Q&A session reveals positive sentiment from analysts, with no erosion in prescriber base and high potential for XDEMVY. Despite some management vagueness, overall guidance and expansion plans are optimistic, suggesting a positive stock price movement in the short term.
The earnings call highlights strong financial performance with a 217% increase in XDEMVY sales and robust cash reserves. The direct-to-consumer campaign and expanded sales force are driving growth, and the company is pursuing global opportunities despite regulatory risks. While increased marketing and R&D expenses could impact profitability, the equity financing reflects market confidence. The Q&A session reveals positive feedback from doctors and no significant disruptions in regulatory meetings. Although long-range guidance is not provided, the overall sentiment is positive due to strong sales growth and strategic initiatives.
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