Hair loss biotechs are racing to deliver the first new baldness treatments in nearly three decades, and investors are positioning for the payoff.
Veradermics, Absci, and Cosmo Pharmaceuticals are advancing a pill, an injection, and a topical drug for pattern hair loss, a condition with no newly approved therapy since the late 1990s.
Hair Loss Biotechs Eye A Market Waiting For A Cure
Pattern hair loss affects an estimated 50 million men and 30 million women in the United States, according to Bloomberg. Current options are limited to decades-old drugs minoxidil and finasteride. Both are tied to side effects that include heart palpitations and reduced sex drive.
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Veradermics (NYSE: MANE) is developing an oral pill, VDPHL01, and its stock has climbed nearly 500% since its February IPO. Absci (NASDAQ: ABSI) is testing an injection dosed two to three times over six months, and its shares have more than doubled so far this year.
Cosmo Pharmaceuticals posted positive late-stage trial results for a topical solution but has traded more cautiously against its US rivals.
Investors Chase A GLP-1 Style Trade
The enthusiasm echoes Eli Lillys stock rally, which reshaped investor appetite for consumer health biotech. Its weight loss drugs first drove that shift.
Eli Lillys stock is up nearly 350% over the last 5 years, with much of that gain driven by its GLP-1 drugs, Zepbound and Mounjaro. Image Source: Trading View
Eli Lilly has since invested $40 million in Absci, betting hair regrowth could follow a similar injectable playbook.
“Both obesity and hair loss are large consumer markets and thats one reason why both of those categories can offer significant revenue potential.”
Geoff Hsu, portfolio manager at OrbiMeds Biotech Growth Trust, Fortune
None of the three companies has an approved product yet. The earliest regulatory filings are not expected before 2027. Investors are pricing in demand years before any drug reaches pharmacy shelves.