Follica Takes in $11 Million for Hair Loss Treatment Approach

Robert Buderi reports that leading stem cell baldness researchers at the new startup Follica have taken in $11 million in new funding — a sure sign that investors believe the new treatments will be viable. Burderi reports:

If only hair could grow as fast as Follica’s pot of money. Just seven months after its $5.5 million Series A financing round, the Boston-based startup today announced it has raised an additional $11 million to bolster its efforts to develop new methods of treating male- and female-pattern baldness and other hair-follicle disorders such as excessive hair growth and acne. Follica, which confirmed a human pilot study of its hair-regeneration technique is underway, also added several new team members, including veteran life sciences and biotech executive G. Kirk Raab, former CEO of Genentech, who joined the company’s board as chairman.

The Series B round was led by Polaris Venture Partners of Waltham, MA (Polaris partner Kevin Bitterman also took a seat on the board), and joined by existing investors Interwest Partners of Dallas and Menlo Park, CA, (which led the Series A round); and founding investor PureTech Ventures, in whose offices Follica is headquartered.


Follica’s main initial focus is developing a treatment for the extremely common form of hair loss called androgenic alopecia—better known as male pattern baldness or female pattern baldness. “This financing will enable us to build out the company and move well down the path towards [regulatory] approval,” says Daphne Zohar, managing director of PureTech Ventures (and an Xconomist). “Our research has been progressing in a very positive way. We have had significant interest from the venture community and while we just closed the Series A round a few months ago, and weren’t planning on bringing in more money for a couple of years, we recognize that additional funds enable us to move more quickly. We have worked with Polaris before and they have been a great partner to us which is why we accelerated the Series B round.” Zohar added that Follica is in the process of transitioning to its own office space, and that it already has independent lab space.

According to Buderi, Follica estimates that the market for an authentic hair rejuvenation treatment would be around $10 BILLION. He had more than 400 comments on an earlier story about the funding for Follica.

Follica’s approach is tied to a discovery that when the skin’s uppermost layers are removed some cells within the wound “revert to a more basic state from which they can develop into either skin or hair,” Buderi says.

For more on the funding side of the story, go here.

Researchers at the University of Pennsylvania School of Medicine found that hair follicles in adult mice regenerate by re-awakening genes once active only in developing embryos. These findings provide unequivocal evidence for the first time that, like other animals such as newts and salamanders, mammals have the power to regenerate. These findings were published in the May 17, 2007 issue of Nature.

A better understanding of this process could lead to novel treatments for hair loss, other skin and hair disorders, and wounds.


“We showed that wound healing triggered an embryonic state in the skin which made it receptive to receiving instructions from wnt proteins,” says senior author George Cotsarelis, MD, Associate Professor of Dermatology. “The wnts are a network of proteins implicated in hair-follicle development.”

Researchers previously believed that adult mammal skin could not regenerate hair follicles. In fact, investigators generally believe that mammals had essentially no true regenerative qualities. (The liver can regenerate large portions, but it is not de novo regeneration; some of the original liver has to remain so that it can regenerate.)

In this study, researchers found that wound healing in a mouse model created an “embryonic window” of opportunity. Dormant embryonic molecular pathways were awakened, sending stem cells to the area of injury. Unexpectedly, the regenerated hair follicles originated from non-hair-follicle stem cells.

“We’ve found that we can influence wound healing with wnts or other proteins that allow the skin to heal in a way that has less scarring and includes all the normal structures of the skin, such as hair follicles and oil glands, rather than just a scar,” explains Cotsarelis.

By introducing more wnt proteins to the wound, the researchers found that they could take advantage of the embryonic genes to promote hair-follicle growth, thus making skin regenerate instead of just repair. Conversely by blocking wnt proteins, they also found that they could stop the production of hair follicles in healed skin.

Increased wnt signaling doubled the number of new hair follicles. This suggests that the embryonic window created by the wound-healing process can be used to manipulate hair-follicle regeneration, leading to novel ways to treat hair loss and hair overgrowth.

These findings go beyond just a possible treatment for male-pattern baldness. If researchers can effectively control hair growth, then they could potentially find cures for people with hair and scalp disorders, such as scarring alopecia where the skin scars, and hair overgrowth.

“This is an extremely exciting discovery and shows promise for treatment of follicular disorders such as hair loss and unwanted excess hair,” noted Dr. Vera Price, co-founder of the National Alopecia Areata Foundation, director of the University of California, San Francisco (UCSF) Hair Research Center and a founding scientific advisory board member of Follica Inc.

“The hair follicle is an elegant structure that plays many different roles for human skin, aside from growing hair,” said Dr. Rox Anderson, Professor of Dermatology at Harvard Medical School, Director of the Wellman Center for Photomedicine at Massachusetts General Hospital, and founding chairman of Follica’s scientific advisory board. “George Cotsarelis’ insights into the biology of hair follicles provide new strategies for preventing and treating a variety of skin and hair disorders.”

Follica exclusively licensed the technology from The University of Pennsylvania School of Medicine where it is the basis of an ongoing development program. The paper’s lead author, Dr. Cotsarelis, is also a co- founder and scientific advisory board member of Follica.

This research was funded in part by the National Institute of Arthritis, Musculoskelatal and Skin Disease and the Pennsylvania Department of Health. Other co-authors in addition to Cotsarelis are Mayumi Ito, Zaixin Yang, Thomas Andl, Chunhua Cui, Noori Kim, and Sarah E. Millar, all from Penn.

Cotsarelis and Ito are listed as inventors on a patent application related to hair-follicle neogenesis and owned by the University of Pennsylvania. Cotsarelis also serves on the scientific advisory board and has equity in Follica, a start-up company that has licensed the patent from the University of Pennsylvania. Cotsarelis was also a co-founder of Follica.