This post was originally published on this site
Tarsus Pharmaceuticals Inc. closed an upsized $134.8 million public offering this month.
The Irvine-based biopharmaceutical company plans to use net proceeds to boost commercialization of its eyedrop Xdemvy in the U.S., as well as develop treatments for other diseases such as ocular rosacea and Lyme disease, according to a Feb. 29 filing with the Securities and Exchange Commission.
Tarsus sold 2.8 million shares of its common stock at $44.50 per share. The underwriters also exercised their option to purchase an additional 421,348 shares at a reduced price of $41.83 apiece.
Goldman Sachs & Co. LLC, BofA Securities, Barclays and Oppenheimer & Co. acted as joint book-running managers for the offering.
Shares in the company have risen 5% to $50.51 and a $2.1 billion market cap in the five trading sessions after the offering closed on March 14.
Expanding Pipeline in Dermatology, Infectious Diseases
Tarsus, the No. 1 ranked midsize publicly traded company (see list, page 37), said it will use part of the proceeds to fund the development of two emerging product pipelines with high unmet needs.
One of these areas is ocular rosacea, a skin condition causing redness, burning and itching in the eyes.
Tarsus has created a topical ophthalmic gel called TP-04 designed to spread across the eyelid and surrounding tissue. It plans to initiate a Phase 2 study for the gel treatment in the second half of 2025.
Also in the works is an oral treatment for the potential prevention of Lyme disease and malaria. The regulatory process for the tick-killing tablet includes a Phase 2 study and a Phase 3 prevention study.
Tarsus said so far it has received positive “feedback” and “engagement” with the Food and Drug Administration on both investigational treatments.
To help expand its pipeline, the company has made two new additions to its executive team and board of directors.
Last November, Tarsus appointed Dr. Elizabeth Yeu as chief medical officer. Yeu, an ophthalmologist with more than two decades of experience, was previously chief medical advisor and board member at Tarsus.
She recently was elected board chair of another ophthalmic company, Staar Surgical Co. in Lake Forest. Her appointment was jointly announced alongside Stephen Farrell’s, the new chief executive of Staar since Feb. 26.
Tarsus also appointed Dr. Katherine “Kate” Goodrich to the company’s board of directors. Goodrich is chief medical officer at healthcare insurance company Humana Inc. in Louisville, Kentucky.
Eyeing Europe, Asia for Approval
Last year was the first full year of sales for Xdemvy.
Tarsus developed and commercialized the first FDA-approved treatment for Demodex blepharitis, an inflammation of the eyelids caused by mites.
The company on Feb. 25 reported $66.4 million and $180.1 million in net product sales for the fourth quarter and full year, respectively.
“Tarsus’ demonstrated category-creating blueprint has established XDEMVY as one of the most successful eye care launches to date,” Tarsus Chief Executive Bobak “Bobby” Azamian said in a statement.
The Business Journal in January named Azamian as one of its Business People of the Year for the growth of the company he co-founded in 2016.
The company expanded its salesforce from 100 to 150 representatives in the third quarter, which led to an increase in prescription volumes in the fourth quarter, according to Azamian.
Beyond the U.S., the company anticipates European regulatory approval of a “preservative-free formulation” of Xdemvy by 2027.
It’s also making crossroads in Asia with plans to meet with Japanese regulatory authorities and Chinese regulatory agency National Medical Products Administration accepting the New Drug Application for Xdemvy.