Tarsus Pharmaceuticals Inc. (NASDAQ: TARS) announced it will receive a $15 million milestone payment following regulatory approval of TP-03 (lotilaner ophthalmic solution) 0.25% by China's National Medical Products Administration.

The approval was obtained by Grand Pharmaceutical Group Limited, Tarsus' partner for development and commercialization of TP-03 for treating Demodex blepharitis in Greater China, which includes China, Hong Kong, Macau and Taiwan. TP-03 is marketed as XDEMVY in the United States.

The milestone payment was triggered by both regulatory approval in China and patent issuance related to TP-03, according to the company's agreement with Grand Pharma. Tarsus remains eligible for additional payments based on further regulatory milestones, China-based sales thresholds, and tiered royalties from product sales in the Greater China region.

Demodex blepharitis affects more than 40 million people in the Greater China region, according to the company. TP-03 received FDA approval in the United States for treating this condition.

Tarsus is also developing TP-04 for potential treatment of ocular rosacea and TP-05 as an oral tablet for potential prevention of Lyme disease, both currently in Phase 2 trials.

The information is based on a company press release.