LONDON: BioPharma Credit PLC (LSE: BPCR), a leading debt investment trust specializing in life sciences, has declared a substantial financial deal with Tarsus Pharmaceuticals, Inc. The agreement, facilitated by BioPharma Credit’s wholly-owned subsidiary and BioPharma Credit Investments V (Master) LP, collectively known as the Lenders, will see an investment of up to $200 million to support Tarsus’s continued growth and product development.

Tarsus Pharmaceuticals, a NASDAQ-listed company with a market capitalization of approximately $1.2 billion, is at the forefront of developing treatments for various medical conditions. Their flagship product, XDEMVY® (lotilaner ophthalmic solution), is an FDA-approved treatment for Demodex blepharitis, which has shown promising sales figures since its launch, particularly in the last quarter of 2023.

The strategic investment is structured across four tranches, with the first tranche of $37.5 million already drawn as of April 19, 2024. The subsequent tranches, amounting to $12.5 million, $25 million, and $25 million respectively, are contingent upon Tarsus achieving specific revenue milestones, with availability extending into late 2025.

This financial partnership is poised to bolster Tarsus’s pipeline, including the development of TP-03 for Meibomian Gland Disease, TP-04 for rosacea, and TP-05, an oral prophylactic against Lyme disease, all currently in Phase 2 clinical trials.

The loan, set to mature in April 2029, carries an interest rate tied to the 3-month SOFR, with a 6.75% annual premium and a minimum SOFR rate of 3.75%. This deal underscores BioPharma Credit PLC’s commitment to fostering innovation and therapeutic advancements in the life sciences industry.

Pedro Gonzalez de Cosio, CEO of Pharmakon Advisors, LP, the Company’s investment adviser said: “The Tarsus team is driving extraordinary success with the launch of XDEMVY®, and we are excited to support the company and management team as they continue growing to profitability and develop additional indications for lotilaner.”

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