Baldness Biotech Veradermics prices $256M IPO for pivotal test of hair loss drug
Alopecia remains an area lacking biotech innovation. The medications currently available are older products with limited effectiveness. Some of them are not suitable for women. Veradermics aims to shake up the market with a new twist on an old drug that treats pattern baldness. The biopharmaceutical company currently has $256 million in IPO cash to use to fund late-stage clinical trials and, if successful, support an application to the FDA.
Veradermics raised more money than planned. The company plans to offer more than 13.3 million shares at $14 to $16 each, according to preliminary financial terms set out last week. Late Tuesday, New Haven, Conn.-based Veradermics expanded the deal to more than 15 million shares at $17 each. The shares began trading on the New York Stock Exchange on Wednesday under the ticker symbol “MANE.” Investors have shown strong interest. Shares opened at $34 and Veradermics' shares more than doubled to $40.01 in its first day of trading.
Veradermics focuses on developing drugs to treat skin diseases. The company's primary indication is androgenic alopecia, also known as pattern baldness. This is the most common form of hair loss, affecting an estimated 80 million people in the United States, including both men and women. Veradermics' lead drug candidate, VDPHL01, is a pill version of minoxidil, an old topical hair loss drug.
Minoxidil was originally developed in the 1960s and 1970s as a vasodilator and is still available in a pill formulation to treat high blood pressure. In clinical testing, hair growth was observed as a side effect. In 1988, the FDA approved a topical formulation of minoxidil under the brand name Rogaine, a solution that can be used twice daily. This now common product is widely sold over the counter. But Veradermics said in its IPO filing that about 86% of users stopped using topical minoxidil within a year, citing reasons including poor efficacy, variable responses and the burden associated with topical administration of the product.
Oral minoxidil has a boxed warning on the label about the risk of pericardial effusion (fluid around the heart). Veradermics said in the filing that while some have delabeled oral minoxidil to treat hair loss, it is not suitable for that use. In addition to the heart risks, oral minoxidil only stays in the circulation for about two hours, which is not enough time to adequately help hair follicles. Veradermics addressed both of these issues by developing VDPHL01 using proprietary extended-release technology. The company said in the filing that its drug has a sustained circulation time of 7.5 to 12 hours when taken once daily and 15 to 24 hours when taken twice daily. Not only is the Veradermics drug exposed in the body for a longer period of time, but the peak concentrations it reaches are also lower than where cardiac activity would normally occur.
“VDPHL01 may provide superior results compared to existing treatment options on the product attributes patients most desire,” Veradermics said in its IPO filing. “In particular, we believe VDPHL01 will increase the upper limit of hair growth by increasing the rate, consistency and intensity of hair growth through more sustained exposure to minoxidil throughout the day, without resulting in peak systemic minoxidil concentrations associated with known cardiac effects.”
Last October, Veradermics reported data from an open-label, proof-of-concept Phase 2 study that enrolled men and women. The company reported preliminary results from 21 men who received VDPHL01 twice daily, showing an average hair gain of 37.5 hairs/cm2 above baseline at two months. The improvement lasted four months. The study drug was well tolerated and no cardiac adverse events were reported. Veradermics said in the filing that it expects to have additional data from the study in the first half of this year.
Three placebo-controlled pivotal studies of VDPHL01 are ongoing and could support an FDA submission. Veradermics has completed enrollment in a 519-patient Phase 2/3 study evaluating VDPHL01 in the treatment of male pattern baldness. The primary objectives were to measure changes in hair number after 24 weeks and patients' self-assessment of hair coverage effectiveness. Preliminary data are expected to be released in the first half of this year. A second Phase 3 trial is still recruiting men; preliminary data are expected in the second half of this year. Another Phase 2/3 study is recruiting women with pattern baldness. Veradermics said the timeline for data readout depends on the progress of the trial.
Veradermics' IPO comes amid a resurgence in hair loss drug research and development activity. Candidates in late-stage development include Cosmo Pharmaceuticals' Breezula and Kintor Pharmaceutical's KX-286, both topical androgen receptor antagonists. Startup Pelage Pharmaceuticals is developing PP405, a mitochondrial pyruvate carrier inhibitor. This locally applied small molecule drug is about to enter Phase 3 testing. Veradermics can stand out from the scene with oral options.
Veradermics said it had raised $263 million since its inception ahead of its IPO. At the end of the third quarter of 2025, the company reported a cash position of $15.1 million. The company increased its cash reserves at the same time as the release of Phase 2 data in October, completing a $151 million Series C round led by SR One. The company is Veradermics' second-largest shareholder, holding a 5.9% stake after the IPO, filings show. After the IPO, Longitude Capital held 10.7% of the shares and became the largest shareholder.
Veradermics said it plans to use the new funds to advance VDPHL01 through regulatory review and, if approved, to conduct initial commercialization in the United States. With the IPO proceeds, Veradermics expects to have enough capital to last more than a year.
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