Eli Lilly is investing in a small startup developing a medication to spur hair growth, and potentially also treat endometriosis. The deal, announced today, marks Lilly's entry into the hair loss drug market, a space dominated by companies like Hims & Hers and dermatology-focused firms.
Absci, an AI-driven biotech based in Vancouver, Washington, specializes in using machine learning to design protein-based drugs. The partnership leverages Lilly's deep expertise in endocrinology and metabolic diseases, where hair loss is a common comorbidity in conditions like diabetes.
Specific financial terms of the investment were not disclosed by either party. The agreement includes option rights for Lilly to acquire certain drug candidates if they meet clinical milestones. Absci's stock rose modestly in afternoon trading on the news.
The move positions Lilly to compete in the estimated $15 billion global hair loss market, which currently lacks effective oral medications beyond finasteride and minoxidil. Clinical trials for the experimental compound are expected to begin next year.
Industry analysts note that Absci's AI platform could accelerate drug development timelines significantly, though early-stage drug failure rates remain high. 'This is a high-risk, high-reward bet,' said one sector observer.