Regulatory & Policy

China's NMPA approves Xdemvy for Demodex blepharitis, triggering $15M milestone payment to Tarsus

China's National Medical Products Administration has approved XDEMVY (lotilaner ophthalmic solution) 0.25% for the treatment of Demodex blepharitis, making it the first therapy approved in the Greater China region to target the root cause of the condition. The approval, obtained by Grand Pharmaceutical Group Limited, triggers a $15 million milestone payment to Tarsus Pharmaceuticals, which developed the drug under the designation TP-03 and holds the US FDA approval for the same indication granted in July 2023. Lotilaner remains the only approved prescription treatment for Demodex blepharitis in any regulatory jurisdiction worldwide.

The NMPA approval covers the People's Republic of China, with Grand Pharma holding exclusive rights to develop and commercialize TP-03 across the Greater China region, including Hong Kong, Macau, and Taiwan. Grand Pharma acquired these rights from LianBio through a novation agreement executed in March 2024, assuming all obligations under the original licensing deal between LianBio and Tarsus. Under the agreement, Tarsus is eligible for additional regulatory milestones, sales threshold milestones, and tiered royalties on product sales in the region, the company said.

The US FDA approval in 2023 was based on data from two Phase II/III randomized, controlled trials, Saturn-1 and Saturn-2, which enrolled patients with Demodex blepharitis. In those studies, lotilaner ophthalmic solution administered as one drop in each eye twice daily for six weeks demonstrated statistically significant rates of collarette cure — complete resolution of the cylindrical dandruff formations at the lash base that are the hallmark clinical sign of Demodex infestation. Approximately 44% of treated patients achieved collarette cure compared with roughly 7% receiving vehicle, and around 60% of patients had no detectable Demodex mites following treatment. The drug also showed significant improvements in erythema cure. The most common adverse reaction was instillation site stinging or burning. Specific clinical trial data supporting the Chinese regulatory submission were not detailed in the announcement, though the approval references the same molecule and formulation evaluated in the Saturn program.

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Demodex blepharitis is a chronic inflammatory eyelid condition driven by infestation with Demodex folliculorum and Demodex brevis mites. The company's announcement references more than 40 million affected individuals in the Greater China region. Before lotilaner's arrival, management relied on off-label approaches — tea tree oil lid scrubs, topical or oral ivermectin, lid hygiene regimens, and in-office mechanical debridement — none of which carried regulatory approval for the indication or directly eradicated the mites. Lotilaner is an isoxazoline compound originally developed by Elanco as a veterinary ectoparasiticide. It acts as a non-competitive antagonist of invertebrate gamma-aminobutyric acid-gated chloride channels, a target absent in mammalian GABA receptors, causing paralysis and death of the mites. Tarsus licenses the underlying intellectual property from Elanco Tiergesundheit AG for human health applications.

No other novel molecules are in late-stage clinical development specifically for Demodex blepharitis. Tarsus is separately advancing TP-04, a related compound in Phase II for ocular rosacea, and TP-05, an oral tablet in Phase II for prevention of Lyme disease. The broader ocular surface landscape has seen recent approvals for adjacent conditions — including Miebo for dry eye disease associated with meibomian gland dysfunction and Vevye for dry eye disease, both approved in 2023 — but none of these target Demodex mites. The China approval extends the geographic reach of the only targeted pharmacotherapy for a condition that has historically been under-diagnosed and managed without standardized treatment protocols. Questions around long-term retreatment strategies and durability of mite eradication remain areas for further clinical investigation.


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