Tarsus Pharmaceuticals Inc Q4 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Francois Brisebois - Oppenheimer - Analyst : Hey thanks guys for the the question and congrats on on a great quarter I I think you know the the the main question and you guys touched on this but I just wanted to see if you can add a little color on how do you motivate prescribers to go from monthly to weekly to daily and and what are the biggest challenges and maybe kind of you know what are you seeing. As you're trying to do that, just to give some confidence because in your answer, if you can touch on, whether or not this still remains an NRX market or it's turning a little more like a TRX, just how do we get more comfort that physicians will be comfortable increasing from monthly, to weekly to daily prescribing for their patients? Thank you.

Question: Francois Brisebois - Oppenheimer - Analyst : Okay, great. And maybe if I could just a quick follow up here. You talked about MGD and it seems like this field that, medical conferences are very important for doctors to kind of talk about their experiences, and what they think of data. What medical conference if you just remind us which ones could be important for Tarsus and sharing is the kind of the classic ophthalmology conferences. And then if maybe Jeff could touch on, you talked about whether in the first quarter and stuff, any, impact on the LA, fires, and just, is this something that's affecting your guys' forecast? Just have to think about that. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 25, 2025 / 1:00PM, TARS.OQ - Q4 2024 Tarsus Pharmaceuticals Inc Earnings Call

Question: Francois Brisebois - Oppenheimer - Analyst : Perfect. Alright, well thank you. That's it for me. Congrats on a great quarter.

Question: Cory Jubinville - LifeSci Capital - Analyst : Congrats on these great, outcomes and and thanks for taking our questions. Building off that MGD question, what has really been the initial receptivity in the field and how should we be thinking about when we should start seeing MGD impacting extend the revenues? Is there an education component, required here where you anticipate ECPS will trial before increasing prescription rates or have you seen this more, plug and play? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 25, 2025 / 1:00PM, TARS.OQ - Q4 2024 Tarsus Pharmaceuticals Inc Earnings Call

Question: Cory Jubinville - LifeSci Capital - Analyst : Got it. That's helpful. And if I could have a follow up, kind of in the same theme, of talking about pipeline expansion into different indications, earlier in the year you shared plans of bringing TP-04into ocularization. Now we're talking about bringing TP-05 forward in line. Can you provide some context on the impact of these programs as it relates to R&D spending CapEx? I know it. The phase two Ocular Rosacea study you mentioned a $7 million to $10 million dollar figure which seems pretty reasonable to me, but what factors have kind of driven those internal go no go decisions here. And how are you thinking about your strategy as it relates to balancing investment in extend these commercial ramp with pipeline development? Particularly as we're kind of approaching, cash flow positivity driven by extend the revenues, how should we be thinking about timelines to cash flow positivity here in relation to all of the updates?

Question: Cory Jubinville - LifeSci Capital - Analyst : Excellent thank you and congrats again.

Question: Mikaela Franceschina - Barclays - Analyst : Hi, good morning, everyone. This is Mikayla on for Barclays, and congrats on all the progress. Circling back as it relates to ocularacea, can you just help us better understand the overlap with DB and just the real opportunity that you believe this represents? And then on the commercial side, I guess just what more will be needed for a gel versus an eye drop. Thanks so much.

Question: Jason Gerberry - Bank of America - Analyst : Hey guys, thanks for taking my questions. Just another one online, I'm just trying to get a sense of how after your FDA discussions, what's the range of how big a prevention study, phase three would need to be and maybe some of this is. Too early to say because the phase two would inform study sizing and that's why I'm asking about a range just trying to understand the size of investment you know you mentioned this is like a GP call point but from a strategic partner's perspective just wondering how large and costly pivotal program might might be there and then, on ex SEB. Can can you break out for the ECPs.what percentage at this point would you say are low prescribers? I'm just trying to get a sense of how the, I guess the call universe of 15,000 ECPs nets out between low prescribers and say high prescribers. It could be just directional just trying to get a sense of of what that mixes.

Question: Oren Livnat - H.C. Wainwright. - Analyst : Thanks for taking my questions and pardon. I've got this cough going around, so, I wasn't planning on asking about TP-05 since that's still a ways off but. I did catch my notice that you've repeatedly said on demand for this therapy, which I guess in my mind begged the question. Are you contemplating potentially people taking this product after a tick bite or exposure that they've noticed, or is this fundamentally a prophylactic treatment, maybe taken seasonally or before outdoor activities, and then I actually have a more, pertinent modeling questions. Thanks.

Question: Oren Livnat - H.C. Wainwright. - Analyst : Okay, thanks, and just to get to the more nitty gritty stuff. Fourth quarter if my math's right, it looked like there was pretty meaningful, channel, stocking, I assume wholesaler activity ahead of price increases and just, maybe ahead of DTC, can you maybe quantify that or if not, can you at least talk about as we prepare for Q1 and not wanting to get that wrong? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 25, 2025 / 1:00PM, TARS.OQ - Q4 2024 Tarsus Pharmaceuticals Inc Earnings Call Is it possible to actually see some work down, work through of inventory in Q1, following the sort of ramp up at the end of the year?

Question: Oren Livnat - H.C. Wainwright. - Analyst : Okay, I guess I was just doing some simple math of your bottles obviously times gross to nets coming out with a closer to $62 million number. I do recognize you don't, book revenue on prescriptions, and then also on DTC, you mentioned the $15 million impact in Q1 and. I Gave us a nice big headline number for that. Is that all incremental to Q4 or is some of that already baked into the Q4 number as that is activated before the end of the year? Thanks.

Question: Oren Livnat - H.C. Wainwright. - Analyst : Perfect and just with treatments a couple of people have touched on it I know we're still early days here. But do you get any feedback in the field from, with regards to what rates of patients are coming in, it might be mid single digits overall or low single digits overall. But for these high prescribers that have been, early adopters and are way ahead of the curve here, what are their patients that are having really great results doing with regards to coming back for retreatments, is that at 20%, hence your steady state number or is that 20% still speculation at this point?

Question: Eddie Hickman - Guggenheim Securities Analyst - Analyst : Good morning. Thanks for taking my question. You've given Q1 bottle guidance and are speaking with some confidence in the quarter over quarter dynamics when it comes to both volume and gross to net. So I'm wondering what more you have to see before providing for your guidance, and are there areas of the launch where you still don't have good clarity, and then on the DTC impact, how accurate are those website visit clicks and surveys to predicting new patient starts? Do you see some sort of steady state capture right there? Thanks.

Question: Eddie Hickman - Guggenheim Securities Analyst - Analyst : Thanks, so you're still seeing like a three to six months sort of delayed impact potentially on those DTC growth.. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 25, 2025 / 1:00PM, TARS.OQ - Q4 2024 Tarsus Pharmaceuticals Inc Earnings Call

Question: Eddie Hickman - Guggenheim Securities Analyst - Analyst : Alright, thank you, congrats on the launch.

Question: Andrea Newkirk - Goldman Sachs - Analyst : Good morning guys, thanks for taking our question maybe a follow up there on the DTC campaign. Aziz, maybe just given your comments that it can take patience months or maybe even repeated exposure to these ads to be inspired to act. Curious how you're thinking about the anticipated duration of the DTC campaign and Jeff for you, should we think that that $60 million to $70 million annual expense should be occurring on an annual basis from here on out. Thanks so much.

Question: Andrea Newkirk - Goldman Sachs - Analyst : Okay, thank you so much.

Question: Lachlan Hanbury-Brown - William Blair - Analyst : Hey guys, thanks for taking the question. Yeah, I guess, Aziz, I'm curious how the sort of interaction or messaging with ECP changes as they move sort of along that continuum from monthly to weekly to multiple times a week or day. Sort of how your approach to them and the messaging that changes. And then, maybe for Jeff, I know last year you were sort of surprised a few times with where Gross and nets ended up. Just curious with the broad coverage now, do you have better visibility into what they should be sort of on a quarter by quarter basis?