The company is pursuing a Phase III trial for its topical stem cell-rejuvenating molecule that aims to reactivate hair growth.
Pelage Pharmaceuticals grabbed $120 million in series B financing to power its topical hair loss treatment into Phase III trials in 2026.
The raise, announced Wednesday, comes on the heels of Phase IIa data in androgenetic alopecia, a genetic condition that reduces the number of active hair follicles while shortening and thinning out hair fibers themselves.
That trial assessed 78 men and women with androgenetic alopecia treated with the company’s lead molecule PP405, a topical small molecule that Pelage says can reactivate dormant hair follicle stem cells and kickstart hair growth. In July, results from the company’s Phase IIa trial met primary safety and secondary pharmacokinetic endpoints, with the drug not appearing to be absorbed into patients’ blood.
In addition, the therapy showed “early signs of new hair growth,” Pelage reported in a statement announcing the data. After eight weeks, 31% of patients receiving PP405 scored a 20% increase in hair density, compared to 0% of patients in the placebo arm.
“Typically, visible hair regrowth requires 6–12 months of continuous therapy, suggesting PP405 may yield a more rapid clinical response than current treatments,” the company said, adding that “unlike existing drugs,” hair growth started from follicles where no hair was present.
With these safety data in hand, the company intends to progress to a Phase III trial testing PP405 for androgenetic alopecia in 2026. PP405 is differentiated from other hair loss treatments because, according to Pelage, it targets hair follicle stem cells, which still reside in balding scalps. Other treatments, the company said, target secondary causes of hair loss like hormones.
That makes PP405 a suitable treatment for “patients traditionally underserved by current treatments, including women and individuals with longstanding hair loss.”
Androgenetic alopecia is a specific form of hair loss that occurs most commonly in postpubescent men and postmenopausal women, without a known genetic cause identified. This is different from other forms of baldness like alopecia areata, which is caused by a loss of immune privilege in hair follicle cells.
The market for hair loss prevention and therapies hit $23.6 billion in 2021, according to Pelage, and is projected to grow to $31.5 billion by 2028.
The series B adds a major new source of cash, after the company’s series A of $16.75 million in February 2024.
