Tarsus Pharmaceuticals Inc. (NASDAQ:TARS) said it will receive a $15 million milestone payment after China’s National Medical Products Administration approved TP-03 (lotilaner ophthalmic solution) 0.25%.
The approval was secured by Grand Pharmaceutical Group Limited, Tarsus’ partner responsible for the development and commercialization of TP-03 for the treatment of Demodex blepharitis in the Greater China region, which includes mainland China, Hong Kong, Macau and Taiwan. In the United States, the therapy is marketed under the name XDEMVY.
According to the agreement between Tarsus and Grand Pharma, the payment was triggered by both the regulatory approval in China and the issuance of a patent covering TP-03. The company said it may also qualify for additional milestone payments tied to future regulatory achievements, as well as sales-based thresholds in China and tiered royalties from product revenue across the Greater China market.
The company estimates that Demodex blepharitis affects more than 40 million people across the Greater China region. TP-03 previously received approval from the U.S. Food and Drug Administration for the treatment of the condition.
Beyond TP-03, Tarsus is advancing other candidates in its pipeline. The company is developing TP-04 as a potential therapy for ocular rosacea and TP-05 as an oral tablet designed to help prevent Lyme disease. Both programs are currently in Phase 2 clinical trials.