Tarsus Books $632.2 Million IPR&D Charge After Alkeus Close

The Tip Desk · November 10, 2026 · 3 min read

XDEMVY net product sales reached $194.6 million in the third quarter as the company closed its Alkeus Pharmaceuticals acquisition.

Tarsus Pharmaceuticals, Inc. (TARS) closed its acquisition of Alkeus Pharmaceuticals in the third quarter and recorded $632.2 million of acquired in-process research and development expense, producing a net loss of $668.3 million, or $(14.40) a share, compared with a $12.6 million loss, or $(0.30) a share, a year earlier.

The charge consisted of $551.2 million related to Alkeus and $81.0 million related to iRenix Medical, representing the acquisition-date fair value of gildeuretinol and IRX-101 in-process research that the company said had no alternative future use. There was no acquired IPR&D expense in the year-ago period.

XDEMVY net product sales were $194.6 million, up approximately 64% from $118.7 million a year earlier. Sequential sales rose from $173.9 million in the second quarter. Year-over-year growth had been more than 85% in the first quarter and more than 69% in the second. The company said the increase was driven by higher volume and improvements in gross-to-net discounts.

Gross margins remained approximately 93%, matching the year-ago period. Cost of sales were $13.9 million, tied to XDEMVY manufacturing, royalties, and amortization of licensor milestone payments.

Selling, general and administrative expenses were $168.0 million. Of the $59.4 million increase from $108.6 million a year earlier, $29.8 million was attributable to Alkeus, including transaction-related and integration costs. The remaining $29.6 million increase was due primarily to commercial and marketing costs including direct-to-consumer advertising, patient support functions, and payroll for commercial and corporate employee additions.

Research and development expenses were $44.2 million. Of the $27.9 million increase from $16.3 million a year earlier, $13.7 million was attributable to Alkeus. The remaining $14.2 million increase included $6.8 million of TP-05 Calliope trial expenses, $1.8 million of TP-04 program expenses, and $0.8 million of IRX-101 program expenses.

The average number of eye care professionals prescribing XDEMVY at least daily increased approximately 20% from the beginning to the end of the third quarter. Direct-to-consumer initiatives drove a 75% increase in high-value actions. Refills accounted for approximately 20% of XDEMVY prescriptions. Since launch, more than one million bottles have been dispensed and cumulative net product sales have surpassed $1 billion.

Tarsus completed the Alkeus deal after announcing the pending acquisition in the second-quarter release. Neera Clase was appointed Chief Commercial Officer after serving as interim CCO. The company said it also completed the iRenix Medical acquisition.

Cash, cash equivalents and marketable securities were $309.6 million as of September 30, 2026.

The Phase 2 Kore trial of TP-04 for ocular rosacea continues, with topline data expected in the first half of 2027. Enrollment in the Phase 2 Calliope trial of TP-05 for potential prevention of Lyme disease was completed; topline results are expected in the first half of 2027 and are anticipated to support a Phase 3-ready package. The company plans to initiate the Phase 3 Comfort study of IRX-101 in the first half of 2027, with topline results expected in 2028. Enrollment continues in the Phase 3 Northstar trial of gildeuretinol for Stargardt disease, with topline results expected in 2029.