Tarsus Pharmaceuticals Posts 150% Revenue Surge to $451M, Eyes $2B Peak Xdemvy Sales
FY2025 revenue surged 150% year-over-year to $451M, with management targeting $670–700M in 2026 and maintaining 93% gross margins. Xdemvy’s US market penetration stands at 5.6%, with international launches planned in China in 2026 and Europe in 2027 and a $2B+ peak sales target.
1. FY2025 Financial Highlights
Tarsus reported FY2025 revenue of $451M, a 150% increase over the prior year, driven by initial Xdemvy sales. The company sustained a high 93% gross margin, reflecting strong pricing power and efficient cost management.
2. 2026 Guidance and Margin Outlook
Management projects FY2026 revenue between $670M and $700M while maintaining near-93% gross margins. Profitability is now anticipated in 2027 as operating leverage from Xdemvy sales accelerates.
3. Xdemvy Market Penetration and Sales Potential
Xdemvy achieved only 5.6% penetration in the US target population, indicating substantial room for growth. Management has set a $2B+ peak sales goal, underpinned by strong early uptake and expanding physician adoption.
4. International Expansion Timeline
Tarsus plans to launch Xdemvy in China in 2026 and in major European markets in 2027. These international rollouts are expected to drive incremental revenue and support the long-term blockbuster trajectory.