Tarsus Pharma slides on $100 mln stock offering

Tarsus Pharmaceuticals

01/03/2024 13:54

** Shares of Tarsus Pharmaceuticals  TARS.O  down 10.9% at
$34.06 premarket after overnight follow-on offering prices
    ** Co early Fri announces ~3.1 mln shares, including 312,500
pre-funded warrants, at $32 for $100 mln gross proceeds
    ** Offering price represents 16.3% discount to stock's last
close
    ** Co plans to use net proceeds to fund commercial launch of
Xdemvy, its anti-parasitic eye drop, and develop its dermatology
and infectious disease prevention product pipeline
    ** TARS shares on Tues rose 18.3% to $39.22 after co
reported Q4 rev of $13.1 mln, well above LSEG consensus est of
$5.7 mln, driven by Xdemvy net product sales
    ** Co on Feb 22 reported positive data from mid-stage trial
for its Lyme disease drug
    ** Tarsus has 34.2 mln shares outstanding for $1.3 bln
market cap
    ** Shares have risen nearly 90% YTD and have gained ~150%
over the past 12 months through Thurs
    ** Goldman Sachs, BofA, Guggenheim and Oppenheimer are jt
bookrunners for stock offering

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))