There were no S&P 500 earnings reactions on Friday, but we want to tell you about another healthcare stock that has caught our attention.
As we talked about last week, the sector just got a shot of adrenaline straight into the heart of Wall Street via Donald Trump’s new deal with Pfizer $PFE.
The equal-weight sector ETF $RSPH is ripping to new multi-month highs in its strongest five-day run since October 2022.
And when money rotates into healthcare, you want to own the leaders - not the laggards.
That’s where Tarsus Pharmaceuticals $TARS comes in.
This is a $2.75B biotech company that’s quickly becoming one of the fastest-growing stories in all of healthcare.
Their flagship product, XDEMVY, is a prescription eye drop for Demodex blepharitis. This chronic eyelid condition affects tens of millions of people globally but has been woefully underserved by modern medicine.
Tarsus saw that gap and filled it with the first and only FDA-approved treatment for this condition.
As this chart shows, XDEMVY’s growth has been nothing short of explosive. Net sales have climbed from just $1.7M in Q3 2023 to over $102M in Q2 2025 - a staggering surge.
Bottles delivered to patients have soared from 1.7K to over 91K in the same time frame.
That’s what exponential adoption looks like.
In less than two years, XDEMVY has gone from launch to blockbuster-plus potential, positioning Tarsus as one of the most dominant players in the ophthalmic therapeutics space.
With a massive untapped market and virtually no direct competition, this growth runway could extend for years.
And it’s not just the fundamentals lighting up.
From a technical perspective, TARS just completed one of the cleanest accumulation patterns in all of healthcare:
After years of churning sideways, Tarsus Pharmaceuticals closed last week at a new all-time high, clearing its post-IPO peak from late 2020.
This breakout marks the beginning of a brand-new markup phase, which could last for years.
With a 48% year-over-year EPS growth rate, 102% year-over-year stock return, and a dominant product story to back it up, the path of least resistance is decisively higher.
Tarsus Pharmaceuticals is precisely the kind of name we want to own at The Beat Report.
