health
Forget GLP-1 stocks, baldness drugs are Wall Street’s next goldmine
Drugmakers found a promising cure for the obesity epidemic and their stocks were rewarded for it. Now, investors are salivating over a new crop of companies tackling a more purely aesthetic problem: baldness.
TL;DR
- Investors are shifting focus from obesity drugs to companies developing baldness treatments.
- Veradermics, Absci, and Cosmo NV are among the companies experiencing stock surges due to promising hair loss drug candidates.
- Existing treatments like minoxidil and finasteride have limitations and side effects, creating demand for new options.
- Cosmo's clascoterone targets the hormonal cause of hair loss directly at the follicle and is nearing regulatory submission.
- Jefferies analysts estimate Cosmo's male hair-loss therapy could reach $3 billion globally.
- Absci is developing an AI-designed drug candidate for pattern hair loss.
- The hair loss market is seen as a large consumer market with significant revenue potential, similar to obesity drugs.
- Unlike obesity drugs, hair loss treatments are expected to be primarily out-of-pocket expenses for consumers.