Southern California Grows Roots as Potential Hotspot For Hair Loss Therapies
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Southern California Grows Roots as Potential Hotspot For Hair Loss Therapies

Ah Southern California, the land of movie stars, glamor, and beauty. A paradise of botox, silicone, and saline. A perfect incubator for a cure for baldness. Maybe.

Several new scientific studies have cropped up in recent months with tantalizing results that suggest researchers are narrowing in on the mechanism that makes hair start growing. At UC Irvine, Maksim Plikus’s research showed that a molecule called SCUBE3 can stimulate new hair growth in mice when injected into the skin. An hour north, at UC Riverside, complementary research by Qixuan Wang is delving into the same mechanics.


Both groups are focusing on a receptor in hair follicle cells called TGF-β, which plays several roles in virtually every tissue in the body. Critically, the receptor is involved in deciding when cells divide and die. By stimulating these proteins correctly–with the right molecules, in the right concentrations, at the right time–researchers are beginning to reactivate dormant hair follicles in mice.

These therapies have a long road ahead of them before they’re available in your local pharmacy. But that hasn’t stopped Plikus from co-founding Amplifica Holdings group with the intent of doing just that. Any treatment using SCUBE3 is probably 2-3 years away from human trials, but the company has other hair-loss therapy compounds in the pipeline that might be ready for human trials sometime next year, says CEO Frank Fazio. Amplifica is keeping its cards extremely close to the vest for now, and wouldn’t say anything about what type of molecule they’re using or how it works. Fazio would only say that the company is “laser-focused” on hair loss.

“We have two compounds that are going to be studied with the hopeful intent of actually having an impact on hair growth and hair restoration,” he said. More information should be available soon, however: Fazio says Plikus has new research that’s under review in “a prestigious journal” which should give some insight into what Amplifica is targeting with these first drugs.

The company is in the process of raising a $10 million Series A to get operations off the ground and transition it out of research and development and into clinical trials. In addition to potentially treating disorders like alopecia areata and regrowing hair in scar tissue, Plikus estimates that the hair loss market could be worth $12 billion by 2025.

There are several existing drugs on the market already, but they come with long term side effects and aren’t universally effective. Ninety percent of new drugs fail in clinical trials, but if Amplifica succeeds, the drugs could be life-changing and the return on investment massive.

The Founders of Color Changing LA's Startup World

Even after the tech industry's reckoning after the killing of George Floyd last year, the startup world is still overwhelmingly dominated by white men.

Of the $150 billion in venture funding raised by U.S startups last year, just $1 billion went to Black founders, according to Crunchbase.

And Southern California is hardly bucking the trend. Just 2% of VC investment partners here identify as Black or Latino and less than 10% of VC-funded companies are led by women or people of color in Southern California, according to PledgeLA.

But even though progress has been slow, there are founders of color helping lead the new wave of tech startups.

Who stands out? We asked the region's top VCs to weigh in.

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Ben Bergman

Ben Bergman is the newsroom's senior finance reporter. Previously he was a senior business reporter and host at KPCC, a senior producer at Gimlet Media, a producer at NPR's Morning Edition, and produced two investigative documentaries for KCET. He has been a frequent on-air contributor to business coverage on NPR and Marketplace and has written for The New York Times and Columbia Journalism Review. Ben was a 2017-2018 Knight-Bagehot Fellow in Economic and Business Journalism at Columbia Business School. In his free time, he enjoys skiing, playing poker, and cheering on The Seattle Seahawks.

https://twitter.com/thebenbergman
ben@dot.la
Disney Picks AI, Paramount Picks a Fight

🔦 Spotlight

Happy Friday, Los Angeles.

If last week felt like Netflix bought the script for Hollywood’s future, this week Disney and Paramount walked in with rewrites. One is handing its most valuable characters to an AI model. The other is trying to yank Warner Bros. away from Netflix with an all cash offer. Underneath both headlines is the same fight over who really owns the audience.

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