What happened
Shares of Tarsus Pharmaceuticals (TARS -0.53%) were up more than 12% as of 12:30 p.m. on Thursday. The stock is up more than 53% so far this year.
So what
Tarsus is a clinical-stage biotech company that focuses on disorders with unmet needs, particularly eye disorders, dermatology, and infectious diseases. Its lead candidate, TP-03, is in phase 2b/3 trials to treat blepharitis (an inflammation of the eyelids) that is caused by an infestation of Demodex mites. There's a lot of enthusiasm lately around TP-03, with the therapy under Food and Drug Administration (FDA) review. The final decision is expected on Aug. 25 and investors appear to be anticipating a positive decision.
TP-03 has the potential to be the first FDA-approved treatment for Demodex blepharitis. The company said if approved this August by the FDA, it expects to begin sales in the fourth quarter and that there were 25 million cases of Demodex blepharitis last year in the U.S.
Another reason for the recent climb is that Tim Lugo, an analyst with William Blair, initiated coverage on the stock this week with a price target of $44.
Now what
The company doesn't have any marketed products yet, so there's obviously risk involved with an investment. In the first quarter, it said it had $2.5 million in revenue, up from $500,000 in the same period last year, mostly from its collaboration with Chinese biotech company LianBio. But it had a net loss $23.4 million, compared to $20.2 million in net losses in the first quarter of 2022.
The company does have a promising pipeline that also includes TP-03 in a phase 2a trial to treat for meibomian gland disease, a type of dry eye that occurs when meibomian glands are blocked and cannot produce oil. The company's other candidates include rosacea therapy TP-04 and Lyme disease preventative TP-05, both of which are in phase 2a trials.