Tarsus Pharmaceuticals, Inc.

Good afternoon, and welcome to the TARCIS second quarter 2024 financial results conference call. As a reminder, this call is being recorded. At this time, I would like to turn the call over to David Nakasone, head of investor relations, to lead off the call. David, you may begin.

Thank you. Before we begin, I encourage everyone to go to the investor section of the TARCIS website to view the earnings release and related materials we will be discussing today. Joining me on the call this afternoon are Bobby Azamian, our Chief Executive Officer and Chairman, Aziz Motawala, our Chief Commercial Officer, Jeff Farrow, our Chief Financial Officer and Chief Strategy Officer, and joining us for the question and answer session, Sesha Nirvanan, our Chief Operating Officer. I'd like to draw your attention to slide three, which contains our forward-looking statements. During this call, we will be making forward-looking statements that are based on our current expectations and beliefs. These statements are subject to certain risks and uncertainties, and our actual results may differ materially. I encourage you to consult the risk factors contained in our SEC filings for additional detail. With that, I will turn the call over to Bobby.

Good afternoon, everyone, and thank you for joining us. I am excited to share yet another quarter of impressive results as we continue to exceed launch expectations for Xtembe, including our own. This call is particularly special as we have just surpassed the one-year mark of EXDEMV being the first and only FDA-approved therapy for the treatment of demonex blepharitis, or DB for short. It was an important opportunity to reflect on one of the most transformative moments in Tarsus history, while also looking forward to redoubling our efforts in this next phase of the EXDEMV launch. With just three full launch quarters under our belts, we are well on our way to creating what we believe will be one of the largest categories in eye care, based on three key metrics. The number of patients we are serving, the speed with which eye care providers or ECPs have adopted Xtendvi, and the exceptional high-quality payer coverage we have secured to date. To further accelerate our success, we are investing in an expanded sales force that we expect will be fully deployed by the end of this quarter and the planned launch of our first-ever consumer television campaign later this year. You'll hear more about these plans from Aziz in a moment. But first, let's turn to our outstanding Q2 results, which include generating more than $40 million in sales. That's a 65% increase over Q1 2024. Delivering more than 37,000 bottles to patients. increasing traction among our target base of 15,000 ECPs. Currently, approximately 11,000 of these ECPs are prescribing Xtemvi, with more than 60% prescribing Xtemvi to multiple patients. And finally, recognizing an exceptional gross to net discount of approximately 44% that reflects the unique value of Xtemvi and the dedicated efforts of our market access team. As a result, we are now recording a net price of more than $1,000 per bottle. That's an impressive standard by any measure and one that is rarely seen with other front-of-the-eye therapeutic launches. Importantly, we expect to maintain this high value throughout the remainder of 2024 with even more improvement anticipated in early 2025 when broad Medicare coverage comes online. Our mission since our founding has been to pioneer new medicines for diseases with significant unmet needs. And while creating a new category is not easy or fast, Tarsus is doing just that. Thanks to years of research, strong clinical trial results, months of prelaunch educational efforts, and the relentless work of the entire team, we are delivering on the promise of a potential blockbuster. is our strong belief that we are just scratching the surface of the potential of Xdengvi. We have made significant traction in reaching the roughly 1.5 million patients already diagnosed with and seeking treatment for DB. This initial addressable segment alone represents a potential billion-dollar market opportunity. Beyond that, we are already expanding into the additional segments we believe make up the remaining 5.5 million patients who visit ECPs with complementary eye conditions, such as dry eye disease, cataracts, and patients who struggle to stay in their contact lenses. Not to mention the additional 18 million patients with DB visiting ECP offices who can ultimately be served with Extendi. Together, they represent a multi-billion dollar potential opportunity. Any way you look at it, The enormous market potential of Xtemvi is clear. Millions of patients are actively seeking solutions. ECPs are excited by the success stories within their practices and motivated to identify and help more patients. We are seeing increasing adoption and utilization in the additional DB patient segments of dry eye, cataracts, and contact lens users. And with the support of our field teams, more and more ECPs are moving along the continuum from trialing Xtemvi to championing it as a consistent prescriber. As a physician, I really enjoy being in the field, listening and learning from our ECPs who consistently tell me about the positive impact of Xtemvi on their patients. I recently met with a father-daughter team in Denver whose practice has been around for 30 years. During my visit, the father couldn't wait to pull me aside to say that Xtemvi has delivered the best outcomes he's seen in his entire career. And the good news is I'm hearing that same sentiment everywhere I go. Regardless of whether the ECP is an early user or an established champion, I am uniformly hearing how well Xtemvi is working for their patients, and every day they are finding more and more people to treat. And now, with an expanded sales force entering the field and planning for our consumer television campaign underway, I am even more convinced of our ability to further accelerate the number of patients served and deliver on the promise of this novel medicine. Before I pass the call to Aziz, I want to remind you that we are simultaneously advancing a robust pipeline based on Lodolanner, the same promising anti-parasitic molecule used in Xtembe. We remain on track, to bring our three programs focused on meibomian gland disease, Lyme disease prevention, and rosacea to the FDA by the end of this year, and look to continue creating and leading in eye diseases that have not yet been effectively served. With that, I'll turn the call over to our Chief Commercial Officer, Aziz Madawala, for more details on our commercial progress.