TipRanks
Wed, July 19, 2023, 10:13 AM EDT
In this article:
TARS
+3.91%
Tarsus Pharmaceuticals (TARS)
Now, let’s shift our focus to Tarsus Pharmaceuticals, a clinical stage biotech firm developing therapeutic candidates in the fields of ophthalmology, dermatology, and other areas with substantial unmet medical demands.
With small-cap biotech stocks, it’s all about the pipeline catalysts and Tauras has a big one coming up. Its lead candidate is TP-03, indicated to treat Demodex blepharitis, a common eyelid condition that impacts around 25 million Americans. The drug has concluded the clinical testing process and in both its Phase 3 trials hit all primary and secondary endpoints. A PDUFA date has been set for August 25, and if approved, it will be the first FDA-approved treatment and standard of care for the condition.
Elsewhere in the pipeline, TP-03 is also being assessed as a treatment for MGD (meibomian gland disease) with a Phase 2a readout anticipated in 2H23. During the second half of the year there should also be a top-line readout from the Phase 2a study of TP-05 in Lyme disease prevention. Additionally, a Phase 2 study of TP-04 as a therapy for Rosacea was initiated in 1Q23.
It’s the major catalyst for TP-03 that takes center stage for Oppenheimer analyst Francois Brisebois, although he stresses that the rest of the pipeline is not to be forgotten.
“Commercially led by eye care veteran CCO Mottiwala (ex-VP Marketing Allergan Eye Care), TARS is well-positioned to develop a new category, eyelid health. We are particularly encouraged by market research revealing an intent to prescribe for demodex blepharitis (DB) of 93%. As awareness grows, our conviction in TP-03’s market potential is reinforced. Additionally, we believe TP-03 could benefit from key differences between DB and dry eye disease (DED) markets. Finally, although we currently don’t value TARS’ pipeline, we believe it should not be dismissed and see multiple opportunities for growth and monetization,” Brisebois opined.
To this end, Brisebois rates TARS shares as Outperform (i.e., Buy) while his price target of $43 implies shares will appreciate by a strong 130% in the months ahead.
Brisebois’s take is no anomaly. In fact, all 7 recent analyst reviews are positive, making the consensus view here a Strong Buy. The average target is even more bullish than Brisebois will allow; at $46.43
