After Obesity, Is Hair Loss Next? Eli Lilly's Investment and Acquisition Moves in Focus [Click e-Stock]

Daishin Securities: "Lilly Likely to Acquire a New-Drug Developer"

Daishin Securities said on the 4th that Eli Lilly, the U.S. pharmaceutical company known for its obesity drugs, should be watched as the large pharmaceutical company most likely to acquire a developer of new hair-loss treatments. Lilly has invested in or expressed interest in investing in three such developers this year. Daishin Securities did not issue an investment rating or target price.

Lee Heeyoung, a researcher at Daishin Securities, said Lilly has a dermatology prescription base, experience selling directly to patients, and a track record of investing in developers that it could draw on when acquiring a new hair-loss drug. "It is worth noting that Lilly is showing interest in developers pursuing different treatment mechanisms," Lee said.

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Lilly said it intended to buy up to 4.9% of Veradermics, which went public in February. Veradermics is developing an oral form of minoxidil, a hair-loss treatment ingredient, designed to release its effects gradually. In April, it reported successful results after six months of treatment in a Phase 3 clinical trial. In June, Lilly invested $40 million in Absci's $100 million public offering. Absci's PRLR antibody candidate is in Phase 1 clinical trials, with interim results related to hair loss expected in the second half of this year. In August, Lilly participated in a Series B investment in Amplifica, which is bringing a candidate that regenerates hair follicle stem cells into clinical trials. The investment amount was not disclosed.

"At present, Lilly's involvement is centered on equity investments, and it has not yet secured development or commercial rights to any candidates," Lee said. However, Lee said Lilly could expand its involvement through co-development or licensing agreements if clinical efficacy and long-term safety are confirmed.

Lilly has built a prescription and sales network among dermatology professionals through sales of Olumiant, a treatment for alopecia areata. Although alopecia areata and androgenetic alopecia - the common form of hair loss caused by genetic and hormonal factors - have different causes, Lee said the network could be an asset when Lilly brings new hair-loss treatments to market.

Olumiant blocks inflammatory signals, reducing the immune response that attacks hair follicles. In Phase 3 clinical trials in adults, 35.9-38.8% of patients saw the area of hair loss on their scalp fall to 20% or less after 36 weeks, far exceeding the 3.3-6.2% in the placebo group. In adolescent trials, the response rate under the same criteria was 42%, compared with 5% in the placebo group, and the drug's approved age range in the United States was expanded to include patients aged 12 and older.

LillyDirect, Lilly's direct-to-consumer platform for medicines, provides connections to online medical consultations, pricing information, and delivery through partner pharmacies. Lee said Lilly's experience responding to demand from patients paying out of pocket for obesity drugs could also be applied to the androgenetic alopecia market, where insurance coverage is limited. Lee also cited the ability to connect patients to care and medication delivery through a single platform as an advantage if Lilly secures a competitive new hair-loss drug.

"We believe Lilly is the large pharmaceutical company most likely to acquire a developer of new hair-loss treatments over the medium to long term," Lee said. "The key factor will be sales performance after launch. If patients are willing to pay the price of a new drug and continue to refill their prescriptions, Lilly will have a greater incentive to secure commercial rights or acquire a company."

This content was produced with the assistance of AI translation services.