Forget GLP-1 stocks, baldness drugs are Wall Street’s next goldmine

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeNewsForget GLP-1 stocks, baldness drugs are Wall Street’s next goldmineWall Street sees new treatments as an untapped goldmine, full of consumers who are willing to pay out-of-pocket for better optionsAuthor of the article:Avalon Pernell and Lisa PhamPattern hair loss affects an estimated 50 million men and 30 million women in the U.S. Photo by iStockphotoDrugmakers 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.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountPattern hair loss affects an estimated 50 million men and 30 million women in the U.S., but there have been no new approved drugs since the late 1990s. The promise of novel treatments has sent shares of Veradermics Inc., which trades as “MANE,” up nearly 500 per cent since the company went public in February, while Absci Corp.’s stock has more than doubled so far in 2026. Cosmo NV also had positive results for an experimental male hair-loss treatment, though its Zurich-listed shares have been weighed down by the success of U.S. competitors.Those who are ineligible for hair transplant surgery — or can’t afford it — are left with two main options: over-the-counter topical minoxidil, the active ingredient in Rogaine, or prescription finasteride, branded as Propecia. They can come with some debilitating side effects; minoxidil is linked to heart palpitations while finasteride is known to lower sex drive. Wall Street sees new treatments as an untapped goldmine, full of consumers who are willing to pay out-of-pocket for better options, reminiscent of the boom in GLP-1 weight-loss drugs. 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Please try again“People will fly all the way to Turkey to have some hair moved around on their head,” said Needham analyst Gil Blum, who rates Absci a buy. “Can you imagine if you could do that without getting a hair transplant?”Drugmakers and investors alike are hoping for a repeat of the successes of the weight-loss drugs that vaulted Eli Lilly & Co.’s market value across the US$1 trillion threshold and made Novo Nordisk A/S, briefly, the most valuable company in Europe.One of the closest to market is Cosmo’s topical medicine, clascoterone, which targets the root cause of male-pattern hair loss by blocking a hormone that causes it directly at the hair follicle.The company says the treatment could be the “single biggest opportunity” in its portfolio and plans to submit a new drug application to U.S. regulators in the first quarter of 2027. Clascoterone five per cent topical solution leverages the same active ingredient used in Winlevi, Cosmo’s acne treatment product.While new medicines are likely more than a year away from hitting U.S. shelves, analysts expect Cosmo shares to nearly double over the next 12 months.Jefferies analysts estimate sales for Cosmo’s male hair-loss therapy reaching US$3 billion globally, “assuming a capable commercial partner is successfully found.” The brokerage said the company may find a partner before the year is over, which could help bolster the share price.Like obesity drugs, there’s room for more than one winner. Analysts tracked by Bloomberg are universally bullish on both Cosmo and Veradermics.“This space definitely can accommodate multiple drugs,” said Jefferies analyst Roger Song, who holds the Street’s highest price target on Veradermics. “Many hair loss patients tend to use multiple drugs, either prescription or over-the-counter — as long as they can afford it — because it’s a cash-pay market.”This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Veradermics announced positive results for its lead candidate, a tablet formulation of minoxidil, in male-pattern hair loss in April. The company also reported promising mid-stage data for women with thinning hair in July. If it’s able to win a nod from the Food and Drug Administration, the drug could become the first approved pill for female-pattern hair loss.Absci, meanwhile, is developing its early-stage drug candidate ABS-201, an AI-designed shot to treat pattern hair loss. The firm expects interim data in the second half of this year.“Both obesity and hair loss are large consumer markets and that’s one reason why both of those categories can offer significant revenue potential,” OrbiMed’s Geoff Hsu, portfolio manager of the Biotech Growth Trust Plc, said in an interview. “If you do find a safe and efficacious drug for hair loss, that would unlock a significant addressable market.”Of course, drug development is high risk, with the potential for big returns counterbalanced by the products and companies that flop. Before GLP-1s won over insurers and consumers alike, a whole generation of obesity drugs failed to reach blockbuster status; some instead went to bankruptcy court.There’s also a major difference with weight-loss drugs: going bald is not a health crisis. GLP-1s, as a weapon in the battle against obesity, were able to secure insurance coverage while also attracting consumers primarily interested in meeting modern beauty standards. Hair-loss drugs are likely to remain out-of-pocket expenses for consumers, but many in the industry remain upbeat on future sales.“If you can make it easier on the patient — that is pain-free and simple like taking a pill — I think it opens a whole new avenue of potential patients to treat,” said Ryan Isherwood, who with his wife owns three Gameday Men’s Health clinics in Wisconsin.Despite high-flying valuations and the risk of failure, analysts remain upbeat on room for future gains.“This is a zero or hero story. I would buy it now because it’s still cheap,” Needham’s Blum said of Absci.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.