Morning Summary - Jul 2 2026

Research evidence excerpt

Morning Summary - Jul 2 2026

MORNING SUMMARY

July 2, 2026

COMPANY AND INDUSTRY UPDATES

TARSUS PHARMACEUTICALS, INC. Buy

TARS - Mgmt Rebuts Culper Short Report; We Remain Positive

Eddie Hickman, Ph.D. TARS $60.89 Price$90.00Target212 518 9904, eddie.hickman@guggenheimpartners.com

Yatin Suneja Current Q Next Q Current FY Next FY

212 518 9565, yatin.suneja@guggenheimpartners.com

$168.0 $180.0 $688.4 $935.0

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Published on July 1, 2026 Market Cap (M) Metric Mult Curr Yr. Mult Next Yr.

$2,620 Rev($)M - -

Key Message: We caught up with TARS CFO Jeff Farrow following today's Culper short report on the name, which alleges Xdemvy's growth has been driven

by an "undisclosed" Medicare copay scheme routed through the Healthwell Foundation's blepharitis fund and raising Anti-Kickback Statute (AKS) concerns,

that the DB addressable market is only ~20% of what the company claims, and that 2026 SG&A is materially understated. In short, mgmt characterized

the report as "inaccurate" and emphasized that the foundation structure was thoughtfully established with King & Spalding to ensure compliance, and that

Healthwell was selected for its robust compliance track record. Mgmt emphasized that: (1) Healthwell's blepharitis fund covers a broad range of treatments

and was established prior to Xdemvy approval, (2) TARS makes quarterly donations characterized as variable SG&A (not a copay assistance program

or GTN item), (3) TARS has NO input into fund allocation and receives NO reports on grant utilization, and (4) TARS does not steer scripts to BlinkRx;

physicians receive a card and select the pharmacy; further, BlinkRx is not the largest specialty pharmacy serving patients, per mgmt. On the refill concerns