Stock of the Day

November 13, 2020

Tarsus Pharmaceuticals (TARS)

$59.85
+$2.16 (+3.7%)
Market Cap: $2.48B

About Tarsus Pharmaceuticals

Tarsus Pharmaceuticals, Inc., a commercial stage biopharmaceutical company, focuses on the development and commercialization of novel therapeutic candidates for eye care in the United States. The company's lead product candidate is XDEMVY, a novel therapeutic for the treatment of blepharitis caused by the infestation of Demodex mites, as well as to treat meibomian gland disease. It is 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 infectious disease prevention. Tarsus Pharmaceuticals, Inc. was incorporated in 2016 and is headquartered in Irvine, California.

Today's Trend

Tarsus Pharmaceuticals, Inc. (NASDAQ:TARS) shares appear to be getting support from a strong first-quarter update, even as analysts trimmed some near-term earnings estimates. The stock is likely reacting to a mix of better-than-expected quarterly results, robust XDEMVY sales growth, and upbeat long-term outlook commentary.

  • Tarsus reported Q1 EPS of -$0.16, beating expectations for a -$0.40 loss, and revenue of $162.05 million, above the $149.60 million consensus. Article Title
  • The company said Q1 XDEMVY net product sales topped $145 million, up more than 85% year over year, and reaffirmed 2026 guidance of $670 million to $700 million in XDEMVY sales. Article Title
  • Management also highlighted broader business momentum, including stronger prescribing trends and the start of a Phase 2 Lyme disease prevention trial for TP-05. Article Title
  • LifeSci Capital and HC Wainwright mostly kept bullish ratings on Tarsus, but several firms slightly lowered near-term EPS estimates after the report, which could temper enthusiasm. Article Title
  • Lifescis Capital cut Q1, Q2, Q3 and FY2026 EPS estimates, and HC Wainwright trimmed FY2027-FY2029 estimates slightly, reflecting continued losses in the near term despite long-term optimism. Article Title

Overall, Tarsus Pharmaceuticals (NASDAQ:TARS) looks to be moving on the combination of a strong quarterly beat and accelerating product sales, with the stock also facing some pressure from trimmed short-term earnings forecasts.

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