Veradermics Secures $150M Series C for Hair Regrowth Pill, Signaling Renewed Interest in Aesthetic Dermatology

Connecticut-based biotech Veradermics has raised $150 million in an oversubscribed Series C funding round, marking a significant development in the pattern hair loss treatment landscape. The financing, led by SR One, will support the company's ongoing Phase III studies for its lead program VDPHL01, an extended-release oral formulation of minoxidil.

Novel Approach to Hair Loss Treatment

VDPHL01 represents a potentially groundbreaking advancement in hair regrowth therapy. Unlike traditional topical minoxidil treatments, Veradermics' pill form aims to provide extended exposure of the drug to hair follicles, promising "fast, consistent and intense" hair growth without the cardiac toxicity risks associated with standard oral minoxidil.

Preliminary Phase II data for VDPHL01 has shown promising results. After two months of twice-daily treatment, patients experienced an increase in the number of thickened and normally pigmented hairs. Hair growth continued to improve through four months of follow-up, with 95% of treated participants reporting increased satisfaction with their hair coverage.

The drug candidate has demonstrated a favorable safety profile, with no serious side effects or adverse cardiac events reported in the mid-stage trial.

Market Potential and Industry Landscape

Pattern hair loss, or androgenetic alopecia, affects an estimated 80 million people in the U.S. alone. Veradermics cites this high prevalence, coupled with a decades-long lack of new treatments, as factors contributing to a projected market exceeding $30 billion by 2028.

The company's Chief Executive Officer, whose name was not disclosed in the provided sources, stated, "With roughly 80 million affected people in the U.S., pattern hair loss is one of the largest aesthetic conditions. The FDA hasn't approved a new treatment for pattern hair loss in almost 30 years."

Competitive Landscape Heats Up

Veradermics' funding announcement comes on the heels of fellow hair growth specialist Pelage Pharmaceuticals securing $120 million in a Series B round. Pelage is developing PP405, a topical small molecule designed to reactivate dormant hair follicle stem cells and restore the body's natural hair growth ability.

These substantial investments underscore a renewed interest in the aesthetic dermatology field, particularly in addressing the long-standing challenge of pattern hair loss.

As Veradermics prepares for potential FDA submissions, the company positions VDPHL01 as the "first and only" extended-release pill form of minoxidil for pattern hair loss treatment. This development could potentially disrupt the current market dominated by topical formulations, which, according to Veradermics, see nearly 90% of patients discontinuing use due to their "messy" application.