During the past year, I have read a number of articles comparing the recent obesity GLP-1 drug boom versus a near future hair loss drug boom. After the highly successful February 2026 IPO of hair loss treatment company Veradermics (US), its CEO pointed out that his company benefited substantially from the obesity drug boom:
“Weight loss showed the playbook and viability of a cash-pay, consumer-directed market and gave investors and gave us conviction that hair loss could be the next weight loss.”
Ironically, GLP-1 drugs often cause temporary telogen effluvium hair loss.
The two companies that currently dominate the global weight loss prescription drug market are:
- Novo Nordisk (Denmark). Maker of Ozempic and Wegovy (semaglutide). Earlier this month, the company rebranded itself to Novo.
- Eli Lilly (US). Maker of Mounjaro and Zepbound (tirzepatide). The company is often just called Lilly. It is one of only around 20 companies in the world with a market capitalization of over $1 trillion.
However, competition is increasing significantly with patent expirations and the approval of pills, longer-lasting injections and newer generation GLP-1 drugs. The latter cause fewer side effects, greater weight loss and/or lead to longer lasting results.
Novo Nordisk to Enter Hair Loss Sector
Yesterday, Novo Nordisk (now called Novo) made a big announcement that it was considering entering the hair loss market. With increasing competition in the weight loss sector, the underdeveloped hair loss segment is ripe for pickings. Only two hair loss drugs have ever been approved by the US FDA: Minoxidil (Rogaine) in 1988 and Finasteride (Propecia) in 1997. A third one based on the ingredient Clascoterone might get approved in 2027.
The smart people of Reddit suggest buying the company’s shares if the totally bald Novo CEO is ever seen with a head of hair.
Eli Lilly Increases Footprint in Hair Loss Sector
I have discussed Eli Lilly’s increasing activity in the hair loss sector a number of time in the past year.
- In August 2026, Eli Lilly led a group that invested $26 million in US-based Amplifica.
- In June 2026, Eli Lilly led a group that invested $100 million in US-based Absci.
- In February 2026, Eli Lilly purchased 4.9% stake in US-based Veradermics.
- Eli Lilly has been considering investing in the hair and skin regeneration segment of OliX Pharmaceuticals (South Korea). This is after they paid OliX $630 million in 2025 for rights to the company’s metabolic-associated steatohepatitis (MASH) drug candidate.
Also of significance, Lilly makes Olumiant (baricitinib), an oral JAK inhibitor pill that was approved by the FDA in 2022 to treat adults with severe alopecia areata (AA). The vast majority (around 95%) of hair loss is due androgenetic alopecia (AGA). This is also called male and female pattern hair loss. However, unlike AGA treatments minoxidil and finasteride, the new JAK inhibitor treatments for AA are often miraculous in re-growing hair in totally bald regions of the scalp.
Also make sure to check out my post on hair loss company stocks.
