Tarsus Pharmaceuticals, Inc. reported significant financial developments for the three and nine months ended September 30, 2024, primarily driven by the commercial launch of its product XDEMVY (lotilaner ophthalmic solution) for treating Demodex blepharitis. The company achieved total revenues of $48.1 million for the third quarter, a substantial increase from $1.9 million in the same period of 2023. For the nine months ended September 30, 2024, total revenues reached $116.5 million, compared to $4.4 million in the prior year. Product sales for the third quarter alone amounted to $48.1 million, reflecting a significant rise from $1.7 million in the previous year.

Despite the revenue growth, Tarsus reported a net loss of $23.4 million for the third quarter, an improvement from a net loss of $39.1 million in the same quarter of 2023. For the nine-month period, the net loss was $92.4 million, slightly down from $94.0 million in the prior year. The company’s operating expenses increased to $73.3 million for the third quarter, up from $42.8 million in the same period last year, largely due to heightened selling, general, and administrative expenses associated with the launch of XDEMVY.

As of September 30, 2024, Tarsus reported cash and cash equivalents of $176.2 million, down from $224.9 million at the end of 2023. Total assets increased to $376.3 million, compared to $265.5 million at the end of the previous fiscal year. The company’s total liabilities also rose significantly to $138.8 million, up from $68.5 million, primarily due to increased long-term debt, which reached $71.7 million.

Strategically, Tarsus has been active in capital raising, completing a public offering in March 2024 that generated net proceeds of $107.7 million. The company also executed a new $75 million credit facility in April 2024, with potential additional draws based on sales milestones. The company’s accumulated deficit increased to $337.1 million as of September 30, 2024, from $244.7 million at the end of 2023.

In terms of operational developments, Tarsus has expanded its sales force and secured contracts with major Medicare payers, achieving over 80% total payer coverage for XDEMVY. The company is also advancing its clinical programs, with positive results reported from trials for other product candidates, including TP-04 and TP-05. The company anticipates continued operating losses as it invests in commercialization and development efforts.