Tarsus Pharmaceuticals and Market Potential

Tarsus Pharmaceuticals has shown robust growth, particularly with its lead drug, Xdemvi, which targets demodex blepharitis, a condition caused by mites on the eyelids. Initial skepticism surrounding Xdemvi's launch has been alleviated by strong early metrics, resulting in a rise in stock price from $15 to mid-40s. Despite a substantial increase in valuation, the enterprise value remains attractive at just one to one and a half times peak sales, indicating further potential for growth. The launch metrics are expected to accelerate as the drug gains traction into 2025, prompting continued patient position retention.