Pelage Pharmaceuticals, a clinical-stage regenerative medicine biotechnology company, today announced the successful close of a $120 million Series B financing, co-led by ARCH Venture Partners and GV (Google Ventures), with participation from existing investors including Main Street Advisors, Visionary Ventures, and YK Bioventures. The new funding will accelerate the development of Pelage’s lead program, PP405, a topical small molecule designed to reactivate dormant hair follicle stem cells, offering a potential first-in-class approach to treating hair loss in both men and women.
“At Pelage, our mission is to deliver clinically-tested treatments that address hair loss through innovative science,” said Daniel Gil, Ph.D., Chief Executive Officer of Pelage Pharmaceuticals. “Hair loss affects more than 80% of men and 40% of women at some point in their lives, yet despite this widespread need, innovation has been lacking and no new FDA-approved options have become available for decades. Our approach leverages the groundbreaking discovery that hair follicle stem cells have a unique metabolic switch. Supported by over ten years of bench research, we have developed a first-in-class investigational therapy that reactivates these dormant cells to stimulate hair regrowth. This Series B financing from leading investors reflects not only the urgent need in this space, but also the quality of our science and the promising clinical results that are enabling us to plan Phase 3 trials for PP405 in 2026.”
Investor Confidence in Regenerative Medicine
“Pelage is a pioneer in the regenerative medicine space, with a scientifically rigorous approach to hair loss that sets them apart from existing treatment options,” said Cathy Friedman, Executive Venture Partner at GV. “There is a growing population affected by hair loss, particularly women, who currently have only one FDA-approved option. We are thrilled to continue supporting Pelage and look forward to partnering with the board and leadership team to advance this promising treatment.”
Richard Heyman, Ph.D., Venture Partner at ARCH, added: “We are excited to support disruptive companies that are pioneering new approaches to public health. Pelage’s leadership, with deep expertise in dermatology and regenerative biology, is well-positioned to deliver an accessible, first-in-class treatment for hair loss—a condition that has lacked effective options for new hair growth for decades.”
Advancing a First-in-Class Therapy
PP405 is a novel, non-invasive, topical small molecule designed to reactivate dormant hair follicle stem cells and restart hair growth. In July 2025, Pelage reported interim results from a randomized, placebo-controlled Phase 2a trial evaluating the safety of PP405 in participants with androgenetic alopecia.
The trial enrolled 78 men and women representing a diverse range of skin phototypes and hair textures. Participants applied topical PP405 or a placebo once daily for four weeks and were observed for eight weeks post-dosing to assess safety and secondary pharmacokinetic endpoints.
Preliminary results demonstrated that PP405 met its primary safety endpoint, was well-tolerated, showed no systemic absorption, and resulted in no systemic adverse events. While the trial was primarily designed to assess safety, the study also revealed early signs of efficacy:
- At Week 8, four weeks after dosing completion, 31% of men with higher degrees of hair loss treated with PP405 experienced more than a 20% increase in hair density, compared to 0% in the placebo group.
- PP405 also demonstrated the ability to induce new hair growth from previously dormant follicles, offering early evidence of its regenerative potential.
Following the randomized controlled phase, placebo participants were eligible for a three-month open-label extension to assess long-term safety, which has now been completed. A full dataset is expected to be shared at a medical meeting in 2026.
Based on these results, Pelage plans to initiate a Phase 3 trial in 2026 to evaluate the safety and efficacy of PP405 in treating androgenetic alopecia.
Leadership and Organizational Developments
In conjunction with the Series B financing, Cathy Friedman, who led Pelage’s Series A round, has been appointed Chair of the Board, and Richard Heyman, Ph.D., will join the board alongside CEO Daniel Gil and William Lowry, Ph.D., Co-Founder and President of Pelage.
Ms. Friedman advises GV’s life sciences portfolio and has a long track record in healthcare investing, including 15 years on the boards of public and private life sciences companies. Earlier, she spent nearly 24 years at Morgan Stanley, serving as managing director, head of West Coast healthcare, and co-head of the biotech practice.
Dr. Heyman is a founder and Chairman of ORIC Pharma and also serves as Chairman of Enliven Pharma, PMV Pharma, Architect Therapeutics, and Alterome Therapeutics. He is on the board of the Salk Institute for Biological Studies and UCSD Cancer Center and has previously founded or led multiple biotech companies, including Seragon Pharmaceuticals (acquired by Genentech/Roche), Aragon Pharmaceuticals (acquired by Johnson & Johnson), and X-Ceptor Therapeutics (acquired by Exelixis). He is an inventor or author on over 120 publications and patents.
Looking Ahead
With the completion of this $120 million Series B financing, Pelage is well-positioned to advance PP405 through late-stage clinical development, potentially delivering a first-in-class, regenerative solution for hair loss. The company’s approach combines cutting-edge biology with clinical rigor, targeting the root cause of hair follicle dormancy rather than managing symptoms, offering hope to millions affected by hair loss worldwide.
