Pelage Pharmaceuticals Secures $120 Million for Novel Hair Loss Treatment

Pelage Pharmaceuticals, a Los Angeles-based startup, has closed a $120 million Series B funding round to advance its innovative topical gel therapy for hair loss. The funding, led by Arch Venture Partners and GV (formerly Google Ventures), marks a significant milestone in the development of a potentially groundbreaking treatment for androgenetic alopecia, the most common form of hair loss.

Revolutionary Approach to Hair Regeneration

Pelage's lead candidate, PP405, represents a first-of-its-kind approach to hair loss treatment. The topical gel is designed to activate dormant hair follicle stem cells by blocking a protein that transports pyruvate into mitochondria. This mechanism leads to an accumulation of pyruvate within cells, which in turn activates lactate dehydrogenase, an enzyme crucial for stimulating hair follicle stem cells.

The company's novel approach aims to address limitations in current FDA-approved treatments, which include minoxidil (Rogaine) and finasteride (Propecia). These existing options often come with side effects and limited efficacy, particularly for women and individuals with longstanding hair loss.

Promising Clinical Results

In June, Pelage reported positive results from a mid-stage clinical trial involving 78 participants with diverse skin tones and hair textures. The study met its primary safety endpoint, demonstrating that PP405 was well-tolerated and did not absorb into the bloodstream.

Notably, the trial showed early signs of efficacy:

• Nearly one-third of men with higher degrees of hair loss in the treatment group experienced a greater than 20% increase in hair density after eight weeks, compared to none in the placebo group.
• The gel stimulated growth in follicles where no hair was previously present, suggesting regenerative potential.
• Results indicated a potentially more rapid clinical response compared to existing treatments, which typically require six months to a year for visible results.

Strategic Expansion and Future Plans

With the new funding, Pelage is poised to accelerate the development of PP405. The company plans to:

1. Share a full dataset from the mid-stage trial at an upcoming medical meeting in 2026.
2. Initiate a late-stage study evaluating the safety and efficacy of PP405.

The investment round also brings strategic changes to Pelage's leadership. Cathy Friedman, an adviser for GV's life sciences portfolio and leader of Pelage's previous $17 million Series A round, has been appointed as board chair. Richard Heyman, a venture partner at Arch, will join the board alongside CEO Daniel Gil and co-founder William Lowry.

As Pelage advances its innovative approach to hair loss treatment, the pharmaceutical industry watches closely, anticipating a potential shift in the landscape of regenerative therapies for a condition affecting over 80% of men and 40% of women in their lifetimes.