"Hair Regeneration Rate 80%"... Stock Price Soars Amid Cheers from Hair Loss Sufferers

American pharmaceutical company Concert Pharmaceuticals has released the clinical trial results of its oral hair loss treatment drug 'CTP-543'.
[Photo by Concert Pharmaceuticals]

[Asia Economy Reporter Sumi Hwang] The stock price of a U.S. pharmaceutical company surged after it released clinical trial results related to a new drug for hair loss treatment.

According to a recent report by the New York Post, U.S. pharmaceutical company Concert Pharmaceuticals has succeeded in developing an oral hair loss treatment drug called 'CTP-543.' This new drug treats hair loss by inhibiting the enzymes JAK1 and JAK2, which are activated during immune responses. In clinical trials conducted on 706 patients aged 18 to 65 with alopecia areata living in the U.S. and Canada, hair growth was restored up to 80% in subjects suffering from severe hair loss.

The participants in the trial had an average of only 16% of their hair remaining. None of them had more than 50%, indicating they were in a state of severe hair loss.

The research team divided them into three groups, each taking different dosages of the pill.

As a result, 4 out of 10 participants showed hair regrowth effects. The hair regeneration rate exceeded 80%, side effects occurred in less than 5% of cases, and the symptoms were mild, such as headaches and acne, the research team explained.

These results were met with cheers from hair loss patients, and the related stock price also rose significantly. Concert Pharmaceuticals closed at $5.88 on the Nasdaq in the U.S. as of the close on the 28th Korean time, up 17.13% ($0.86). The increase rate once soared to as much as 30%.

Concert Pharmaceuticals plans to apply for FDA approval of 'CTP-543' after repeating Phase 3 trials on 517 hair loss patients.

Meanwhile, Concert Pharmaceuticals, which has been listed on Nasdaq since 2014 and has hovered outside the top 2000 in market capitalization, now faces a critical juncture. Whether the clinical trial is ultimately successful and whether the FDA grants approval are two key challenges, and failure to meet either condition is expected to cause a sharp drop in stock price.