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The hair loss market is emerging as a cash cow for domestic pharmaceuticals and biotechnology corporations. This is because the demand is increasing not only from hair loss patients but also from men and women seeking to prevent and manage hair loss. Domestic pharmaceuticals and biotechnology corporations are rushing to launch over-the-counter medicines and cosmetics related to hair loss.

According to the Health Insurance Review & Assessment Service (HIRA), the number of patients who received treatment for hair loss at hospitals in Korea increased by about 11% from approximately 225,000 in 2018 to about 248,000 in 2022. Among them, patients in their 20s and 30s account for 40% of the total. Hair loss due to non-genetic factors or aging, which is not covered by health insurance, is excluded from patient counts, so the actual number of people experiencing hair loss is likely higher.

Hair loss occurs due to genetic and environmental factors, stress, and hormone influences, and recently, there has been a trend of occurring at younger ages. Accordingly, the market is also growing. The Korea Institute of Science and Technology Information (KISTI) projects that the global hair loss market will grow from $13.162 billion (approximately 17.8 trillion won) in 2020 to $21.098 billion (approximately 28.5 trillion won) this year.

JW Shinyak (left) and Dong-A Pharmaceutical each launch over-the-counter medications for hair loss treatment. /Courtesy of each company

◇Minoxidil as the main ingredient... Improved new products for summer discomfort

Most of the hair loss treatments available on the market contain 'minoxidil' as the main ingredient. Originally developed as a treatment for hypertension, it is now used for hair loss treatment due to its confirmed hair growth-promoting effects. It works by dilating the peripheral blood vessels in the scalp and increasing blood flow to the skin, aiding hair growth. The U.S. Food and Drug Administration (FDA) first approved a hair loss treatment containing minoxidil in 1988.

The hair loss treatment products released last month by JW Shinyak and Dong-A Pharmaceutical also contain minoxidil as the main ingredient. JW Shinyak's 'MyDil 5% Foam Aerosol' and Dong-A Pharmaceutical's 'Capillus Foam Aerosol' are available as over-the-counter drugs.

Both products are in foam form and are applied to the areas of hair loss, being effective for both male and female pattern baldness. However, there are differences in the recommended usage period based on gender.

There is a reason why both companies launched similar new products in the same month. Existing liquid and gel forms of hair loss treatments caused hair to clump together, making them inconvenient to use in summer, prompting the improvement to capture summer demand.

A representative from Dong-A Pharmaceutical stated, 'The new product is a foam with a dense consistency, resulting in less hair clumping and stickiness than liquid and gel products, allowing for daily use morning and evening.' They also noted that they have improved the issue of the minoxidil foam rapidly liquefying due to temperature changes.

JW Shinyak is also selling oral hair loss treatments 'Monad Tablets' and 'Dutamoa Tablets.' In 2023, they signed an exclusive contract with the French pharmaceutical company Pierre Fabre and are distributing and selling hair strengthening cosmetics.

CHA Biotech releases the hair loss symptom relief skin booster 'Celtermi Revive HS' (top), and OliX Pharmaceuticals releases the functional cosmetics for hair loss symptom relief 'U:BERNA' products. /Courtesy of each company

◇Research and development achievements in hair loss, functional cosmetics

Some corporations are introducing functional cosmetics first, utilizing research achievements and technologies related to hair loss. OliX Pharmaceuticals and CHA Biotech's subsidiary ChaMeditech are examples.

The two companies launched functional cosmetics that help alleviate hair loss symptoms last month. Developing new drugs requires several stages of clinical trials involving patients, which is time-consuming and expensive, so they aim to secure stable revenue by launching functional cosmetics, which are relatively easier to develop with existing technologies.

OliX Pharmaceuticals is a bio company developing therapeutic candidates using short interfering RNA (siRNA) that regulates gene expression. RNA copies genetic information from DNA to create proteins. However, some fragments of RNA do not create proteins but instead bind with other RNA. This blocks the function of the genes copied by that RNA.

Lee Dong-ki, CEO of OliX Pharmaceuticals, stated, 'We launched the hair loss symptom alleviating cosmetic U:BERNA based on our research and development capabilities related to hair.' He added, 'Starting with the domestic market, we plan to secure consumer satisfaction and usability data and aim for rapid global expansion.' U:BERNA is a cosmetic that is concentrated for a total of 12 weeks, used 1mL every two weeks.

The skin booster 'Seltami Revive HS' launched by ChaMeditech is developed based on the principle of promoting the proliferation of dermal papilla cells, which are key to hair formation. Dermal papilla cells, located at the base of hair roots, supply oxygen and nutrients to the hair follicles, regulating hair growth and the hair follicle cycle.

According to the company, this product confirmed an increase in hair density and improvement in vertex and M-shaped hair loss in clinical trials conducted under the advice of Specialist Kim Sang-yeob, director of JF Dermatology. Kim Seok-jin, CEO of ChaMeditech, said, 'This is the first time ChaMeditech is expanding from facial aesthetics to the field of scalp hair loss,' and added, 'We will increase our market share in the global aesthetic market through partnerships with global partners.'