Caught Up with Mgmt - No Change to Our View on Short Report

Research evidence excerpt

Caught Up with Mgmt - No Change to Our View on Short Report

USA | Specialty Pharmaceuticals

Tarsus EquityJulyResearch1, 2026

FLASH NOTECaught Up with Mgmt - No Change to Our View

RATING BUYon Short Report

PRICE $60.89^

We caught up with TARS CFO on today's short report - overall messaging was

in-line w/ our thoughts (here). Mgmt pushed back on anti-kickback violations PRICE TARGET | % TO PT $88.00 | +45%

noting extensive compliance diligence around its foundation support program, 52W HIGH-LOW $85.25 - $38.51

no visibility into donation allocation, and strict separation between commercial FLOAT (%) | ADV MM (USD) 94.4% | 49.64

teams and patient assistance. Mgmt also noted docs drive pharmacy selection MARKET CAP $2.6B

and refills, and higher foundation costs are already embedded in SG&A TICKER TARS ^Prior trading day's closing price unless otherwise

guidance. noted.

We caught up with TARS CFO on the short report and overall messaging is aligned with our

thoughts (here). Mgmt notes they spent significant time building a compliant Medicare patient

support framework and was highly deliberate in selecting an independent foundation partner given

scrutiny on foundations in the past. Mgmt engaged external counsel that specialized in compliance

to sift through potential foundations and was intentional in donating to one that has a pristine

reputation and also in avoiding structures that could create regulatory concerns like single-product /

DB-specific funds. Mgmt emphasized it gets no insights on how its donations are allocated or

which patients ultimately receive assistance, and also highlighted the commercial team had no

involvement in foundation selection.

On BlinkRx, mgmt pushed back on the report's characterization of channel concentration. Mgmt