Pelage Pharmaceuticals, a Los Angeles–based biotechnology company developing regenerative treatments for hair loss, announced the close of a $120 million Series B financing round co-led by ARCH Venture Partners and GV (Google Ventures). The funding round included participation from existing investors such as Main Street Advisors, Visionary Ventures, and YK Bioventures.
The new funding will support the continued advancement of Pelage’s lead candidate, PP405, a topical small molecule therapy designed to reactivate dormant hair follicle stem cells and restore natural hair growth.
The financing marks a significant milestone for Pelage as it prepares to move PP405 into Phase 3 clinical trials in 2026 following promising results from its Phase 2a study in androgenetic alopecia. The company’s technology is based on more than a decade of research into the metabolic mechanisms that regulate hair follicle stem cell activation. PP405 represents a first-in-class approach to hair regrowth that could address both male and female pattern hair loss — a condition affecting over 80% of men and 40% of women globally.
Pelage’s recently reported Phase 2a results showed encouraging early signals of efficacy in addition to a strong safety profile. The randomized, placebo-controlled study enrolled 78 participants across diverse skin and hair types who received topical PP405 or placebo once daily for four weeks. The drug was well tolerated, with no systemic absorption detected and no serious adverse events reported. Notably, at week eight—four weeks after treatment completion—31% of men with advanced hair loss experienced a greater than 20% increase in hair density, compared to none in the placebo group. Researchers also observed new hair growth emerging from previously inactive follicles, suggesting PP405’s regenerative potential.
Participants from the placebo group later entered a three-month open-label extension to further evaluate safety and long-term use. Pelage plans to present the full clinical dataset at a major medical conference in 2026. These results will help inform the design of its upcoming Phase 3 trial, which aims to validate PP405 as a safe, effective, and accessible treatment for androgenetic alopecia.
As part of the Series B, Pelage also announced key leadership updates. Cathy Friedman, Executive Venture Partner at GV and a long-time life sciences investor, has been appointed Chair of the Board. Richard Heyman, Ph.D., Venture Partner at ARCH Venture Partners and a veteran biotech entrepreneur, has joined the Board of Directors. They will serve alongside CEO Daniel Gil, Ph.D., and Co-Founder and President William Lowry, Ph.D.
Friedman brings decades of experience in life sciences investing and corporate leadership, including 24 years at Morgan Stanley, where she served as managing director and co-head of the biotech practice. Heyman’s career spans multiple biotech startups, including Seragon Pharmaceuticals and Aragon Pharmaceuticals, both acquired by major pharmaceutical companies. He also chairs several other biotech boards and serves on the Salk Institute’s Board of Trustees.
The addition of seasoned industry leaders and the strong backing from top-tier investors reinforce Pelage’s position at the forefront of regenerative dermatology. With PP405 advancing toward late-stage clinical development, the company aims to deliver the first new FDA-approved therapy for hair regrowth in decades—one that restores natural growth by addressing the biological root cause of hair loss.
KEY QUOTES:
“At Pelage, our goal is to deliver a clinically-tested treatment to combat hair loss, grounded in innovative science. Despite the growing need for treatments for hair loss, which affects more than 80% of men and 40% of women throughout their lifetimes, innovation has been lacking, and a new FDA-approved option has not become available for decades. Our approach is based on the groundbreaking discovery that hair follicle stem cells have a unique metabolic switch. Supported by over ten years of bench research on the mechanism and associated biological pathways, we have designed a first-in-class investigational treatment that reactivates these hair follicle stem cells to regrow hair. This new funding from leading investors reinforces not only the need in the space, but the quality of our scientific approach and clinical results to date, which are enabling us to enter Phase 3 trials for lead program PP405 in 2026.”
Daniel Gil, Ph.D., Chief Executive Officer of Pelage Pharmaceuticals
“Pelage is a pioneer in the regenerative medicine space, with a scientifically rigorous approach to address hair loss that sets them apart from currently available treatments. This could fulfill an urgent need, as we see a growing portion of the population experiencing hair loss, including women, who only have one FDA-approved option. We at GV are thrilled to continue working with Pelage, and I look forward to partnering with the board and leadership team to support this new potential treatment option.”
Cathy Friedman, Executive Venture Partner at GV
“At ARCH, we are excited by disruptive companies pioneering new approaches to improve public health, and we are proud to join this investor syndicate in support of a first-in-class treatment for hair loss. Pelage’s leadership team, with deep expertise in dermatology and regenerative biology, is well-positioned to bring a new treatment that is accessible for all to a space that is lacking in treatment options that promote new hair growth.”
Richard Heyman, Ph.D., Venture Partner at ARCH
