TARS

Tarsus is a single-product commercial-stage biopharma whose one drug, XDEMVY (lotilaner) for Demodex blepharitis, is executing one of the cleaner launches in specialty eye care. FY2025 net product sales hit $451M, up 146.7% YoY and the fourth straight acceleration off a $17M trough in FY2023 — the MD&A reports ~400,000 bottles delivered (130,000 in Q4 alone), >90% commercial/Medicare/Medicaid covered lives, and a stabilized ~45% gross-to-net. Crucially, Q4 sales of $151.7M annualize to a ~$600M run-rate, so the trailing 5.8x P/S overstates the forward multiple. Unaided disease awareness rising from 2% to ~25% on a positively-ROI DTC campaign, against an addressable base management cites at ~25M U.S. sufferers, says the category is still early.

The financial trajectory is the real tell. Net loss narrowed to -$66.4M from -$115.6M and -$135.9M, operating cash flow improved 85% to just -$12.5M, and the company is now within striking distance of self-funding. The balance sheet supports the bridge: $184M cash (+94%), $343M equity, only $72.4M long-term debt and a benign 0.64x liabilities/equity. Negative ROE (-19.3%) and the -$427M accumulated deficit are legacy artifacts of pre-launch R&D, not signs of present-day stress; with R&D up a restrained 20.5%, operating leverage is doing the work as revenue triples against a roughly fixed cost base.