#Free BiQ: Coverage Status Update (TARS)

After further researching Tarsus Pharmaceutical's (TARS) XDEMVY's patents, I've become cautious about the strength of its long-term IP protection. Keeping in mind that I'm not an attorney, from the best I can tell, XDEMVY only has composition-of-matter patent protection through 2030, and then must rely on method-of-use patent protection through 2038. While MoU patents may be adequate, the lack of clear long-term composition-of-matter patent protection raises concerns in my mind about the potential for patent challenges as early as 2030--especially since Lotilaner, the chemical entity in XDEMVY, is readily available for purchase for ~$50/gram, or less if purchased in bulk. Lack of clear long-term patent protection may also limit the chances of a potential buyout.

The company's commercial performance has been excellent, and I think there could be significant upside for the shares--especially after the recent pullback in the share price and potential expansion into new, adjacent indications. However, without a clearer picture of the long-term IP landscape for XDEMVY, Tarsus's only product, I am changing my L/T Outlook to Cautious and downgrading the iQ RAR score to a B-. While I plan to continue covering TARS for Biotech iQ subscribers, I am moving it from Active Coverage to the Probation list pending further review.

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