Tarsus Raises 2026 XDEMVY Sales Outlook After Q3 Sales Jump 64%

Tarsus Pharmaceuticals (NASDAQ: TARS) raised its 2026 XDEMVY net sales guidance after the eye-care treatment generated record third-quarter sales of $194.6 million, up 63.9% from $118.7 million a year earlier. The company now expects full-year XDEMVY net sales of $715 million to $730 million, compared with its previous forecast of $685 million to $705 million.

The growth reflects broader use of XDEMVY for Demodex blepharitis, including increasing retreatment and deeper adoption among eye-care providers. Refills accounted for about 20% of weekly prescriptions during the third quarter, while the number of providers prescribing XDEMVY at least five times per week rose nearly 20% from the prior quarter.

Tarsus said more than 1 million bottles of XDEMVY have been dispensed, with cumulative sales exceeding $1 billion. The company estimates that about 25 million Americans have Demodex blepharitis and that more than 9 million seek treatment for the condition or other eye disorders, indicating a substantial population that has not yet received the drug.

Commercial investment expands

Tarsus attributed part of the increased demand to its direct-to-consumer campaigns, which include television advertising and social media initiatives. High-value consumer actions, such as completing an online quiz or using a chat function, increased 75% during the quarter. The company also said website visitors were converting into office visits, diagnoses and prescriptions at a higher rate than last year.

The company added $5 million to its consumer-marketing investment and expects full-year direct-to-consumer spending of approximately $95 million. According to the presentation, the increase in the XDEMVY sales outlook exceeded the additional marketing investment.

Tarsus also presented new evidence intended to support screening, diagnosis and treatment of Demodex blepharitis. In company-cited data, 98% of surveyed clinicians were satisfied or very satisfied with retreatment, while nearly 90% of patients said they would use XDEMVY again if recommended. Other data showed Demodex blepharitis in 65% of patients with chalazia or hordeola, rising to 91% among recurrent cases.

Updated expense outlook

Tarsus maintained its expected 2026 gross margin at approximately 93%. It now projects research and development expenses of $140 million to $155 million, including $20 million to $25 million of stock-based compensation, compared with its previous range of $190 million to $210 million.

Selling, general and administrative expenses are expected to be $605 million to $620 million, including $45 million to $50 million of stock-based compensation. The prior SG&A forecast was $545 million to $565 million.

The company also expects to record approximately $632 million of acquired in-process research and development charges in the third quarter, comprising $551 million related to Alkeus Pharmaceuticals and $81 million related to iRenix Medical. Tarsus ended the quarter with approximately $310 million in cash, cash equivalents and marketable securities.

Pipeline milestones

Beyond XDEMVY, Tarsus is advancing programs in retinal disease, ocular antisepsis, ocular rosacea and Lyme disease prevention. ALK-001, an investigational treatment for Stargardt disease obtained through the Alkeus acquisition, is in Phase 3 development, with topline data expected in 2029.

The company plans to begin a Phase 3 study of IRX-101, an investigational ocular antiseptic acquired through iRenix, in the first half of 2027. Phase 2 topline results for TP-04 in ocular rosacea and TP-05 in Lyme disease prevention are also expected in the first half of 2027. XDEMVY is approved in the U.S., while rights for Demodex blepharitis in China are licensed to GrandPharma.

The outlook remains subject to commercial and clinical uncertainties, including continued XDEMVY adoption, payer coverage, patient access, sales-force execution and the effectiveness of consumer advertising. Development timelines also depend on trial results and regulatory outcomes, while the anticipated benefits of the Alkeus and iRenix acquisitions rely on successful development and potential approval of their respective programs.