Mar. 25 at 7:53 PM
Mizuho⬆️
$TARS's PT to
$101 from
$100 and reiterated at an Outperform rating, and said—On Monday (3/23), TARS announced its Chinese partner, Grand Pharma, received approval to commercialize TP-03 (marketed as Xdemvy in the US) for the treatment of Demodex blepharitis in the Greater China region, which includes the People's Republic of China, Hong Kong, Macau and Taiwan. The Chinese approval triggers a
$15MN milestone payment from Grand Pharma to TARS, which also is subject to receive additional milestone and royalty payments based on TP-03 sales in the Greater China region. The approval came a bit earlier than expected (we previously assumed in 4Q26), but that said, when accounting for our model changes (described below), our PT moves to
$101 (from
$100).
Big picture, we remain confident in TARS' execution on the US Xdemvy launch and, with TARS shares down 22% YTD (vs. -2% XBI), and seeing favorable risk/reward, we reiterate our OP rating on TARS.
