Pelage Pharmaceuticals Secures $120 Million for Innovative Hair Loss Treatment

Pelage Pharmaceuticals, a Los Angeles-based startup, has successfully closed a $120 million Series B funding round to advance its novel topical gel therapy for hair loss. The fundraising effort, led by Arch Venture Partners and GV (formerly Google Ventures), underscores growing interest in regenerative approaches to treating alopecia.

A New Approach to Hair Regeneration

Pelage's experimental therapy, code-named PP405, targets dormant hair follicle stem cells through a unique mechanism of action. The topical gel is designed to block a protein that transports pyruvate into mitochondria, leading to increased activity of lactate dehydrogenase—an enzyme that activates hair follicle stem cells.

This approach differentiates PP405 from currently approved treatments like minoxidil (Rogaine) and finasteride (Propecia), which have limited efficacy and potential side effects. Notably, Pelage aims to address underserved populations, including women and individuals with long-standing hair loss.

Richard Heyman, a venture partner at Arch, stated that Pelage is "well-positioned" to bring an "accessible for all" therapy to a market lacking in treatment options.

Promising Clinical Results

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

Efficacy data from the trial showed encouraging signs:

• Nearly one-third of men with higher-degree hair loss in the PP405 group experienced a greater than 20% increase in hair density at eight weeks, compared to none in the placebo group.
• The gel stimulated growth from previously inactive follicles, suggesting regenerative potential.
• Visible hair regrowth was observed more rapidly than with current treatments, which typically require six months to a year of continuous use.

Strategic Developments and Future Plans

The substantial funding round will support Pelage's continued development of PP405. CEO Daniel Gil stated that the investment affirms the quality of the company's scientific approach and clinical results.

Pelage has also announced key appointments to its board:

• Cathy Friedman, an adviser for GV's life sciences portfolio, has been named board chair.
• Richard Heyman from Arch Venture Partners will join the board alongside Gil and company co-founder William Lowry.

Looking ahead, Pelage plans to:

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

As Pelage advances its innovative approach to hair loss treatment, the pharmaceutical industry watches closely to see if this regenerative therapy can address the unmet needs of the estimated 80% of men and 40% of women who experience hair loss in their lifetimes.