Hair loss is a defining issue for many people as they age. A number of biotechnology companies have been studying the factors that contribute to hair loss and attempting to develop solutions. Pelage Pharmaceuticals, a regenerative medicine biotechnology company, has developed a clinically tested treatment based on years of research on hair follicle stem cells.
As validation of the company’s potential to disrupt the hair loss treatment market, Pelage raised $120 million of new Series B financing in a funding round co-led by Google Ventures and ARCH Venture Partners. It is a remarkable growth story for a company that raised just $16 million in its Series A financing round in 2024.
Pelage’s scientifically-driven approach has set it apart from competitors. Its hair loss treatment is centered around PP405, a small molecule that is capable of reactivating hair growth in dormant hair follicles. PP405 is able to stimulate cellular metabolism and reactivate hair follicle stem cells. Topical applications of PP405 have led to notable improvements in hair growth over time. Participants in a clinical trial that received topical applications of PP405 on a daily basis reported significant increases in hair density after many weeks.
Pelage was founded in 2018 by a group of UCLA professors with extensive backgrounds in stem cell biology. The co-founders discovered the novel compounds for reactivating the stem cells in hair follicles from their research studies on mice.
While age is the main factor that slows down the hair follicle growth cycle, various other factors such as stress, hormones, genetics, and illness can accelerate the pace of hair loss. Rapid weight loss from GLP-1 drug use is also reported to contribute to hair thinning. Although hair transplants have gained popularity especially among men, it is a highly invasive and costly surgical procedure. Many people are instead looking for non-invasive hair restoration treatments.
“Despite the growing need for treatments for hair loss, which affects more than 80% of men and 40% of women throughout their lifetimes, innovation has been lacking, and a new FDA-approved option has not become available for decades,” stated Pelage CEO Daniel Gil. “Supported by over ten years of bench research on the mechanism and associated biological pathways, we have designed a first-in-class investigational treatment that reactivates these hair follicle stem cells to regrow hair.”
An estimated 85% of men and 40% of women suffer from noticeable hair loss by the age of 50.It has been decades since a new FDA-approved treatment has become available. The most common topical solution used by millions of people today is minoxidil. Other clinical-stage companies developing novel techniques for combating hair loss include Cosmo Pharmaceuticals and Veradermics.
Pelage plans to use the newly raised capital from its Series B financing round to support scientific research and clinical trials. Its PP405 program is expected to move into Phase 3 clinical trials soon. Pelage aims to eventually bring its hair restoration treatments to the market, offering consumers a potentially attractive alternative to current treatment options.
