Hair Loss Treatment Advance
DaySpring Pharma announces positive Phase II trial results for male hair loss drug CG2001.
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A topical hair loss drug combining two proven ingredients has cleared a key clinical hurdle. DaySpring Pharma announced positive Phase II results for CG2001, a foam that pairs minoxidil with finasteride, showing a gain of 28.17 hairs per square centimeter after 24 weeks — nearly four times the placebo result of 7.68 hairs per square centimeter, according to PR Newswire.
The results were presented at the 14th World Congress for Hair Research in Seoul, South Korea, in late May 2026. The company says no sex-related side effects were found — a major concern with finasteride in pill form. DaySpring is now working with regulators to plan its Phase III trial, AP News reported.
CG2001 Beats Placebo With a Strong Safety Record
The Phase II trial enrolled 110 adult Chinese men with male pattern baldness. The group taking CG2001 twice daily — a 5% minoxidil and 0.075% finasteride foam — gained an average of 28.17 hairs per square centimeter by Week 24. The placebo group gained only 7.68. That difference produced a p-value of 0.006, meaning the result is highly unlikely to be due to chance, according to PR Newswire.
Meaningful results appeared as early as Week 12, Yahoo Finance reported. The only drug-related side effect was mild contact dermatitis — some itching and scaliness — in a small number of patients. It resolved on its own. Critically, no sexual side effects were reported, which is the main reason many men avoid oral finasteride.
Why Finasteride in a Foam Changes the Safety Equation
Oral finasteride works by blocking DHT, the hormone that shrinks hair follicles. But it enters the bloodstream at high levels, which can cause sexual dysfunction. CG2001 targets the scalp directly. A Phase I study published in February 2026 found that the drug's peak blood concentration was roughly 30 times lower than the standard 1mg oral pill — 272.53 pg/mL versus 9.20 ng/mL — according to Newswire Canada.
The foam uses no isopropyl alcohol, unlike older topical finasteride products that caused scalp irritation. DaySpring says the formulation is designed to target hair follicles while keeping the drug out of the rest of the body. That design is central to the company's claim of a better safety profile with no loss of efficacy.
A Crowded Market Awaits a Regulated Combination Drug
The global hair loss treatment market is worth between $5 billion and $9 billion in 2026. Companies like Hims & Hers and Keeps already sell compounded topical minoxidil-finasteride blends. But those are mixed by pharmacies, not manufactured under full regulatory review. CG2001 would be a fixed-dose combination drug — meaning consistent dosing and rigorous safety validation that compounded products typically lack, according to PR Newswire.
CEO Baohui Yu said the company is "encouraged by the Phase II results, which support CG2001's potential as a differentiated treatment option." Lead investigator Professor Cheng Zhou of Peking University People's Hospital presented the data in Seoul. DaySpring says efficacy was roughly 50% higher than published data from existing minoxidil foam studies in China, though outside researchers caution that cross-trial comparisons can be misleading.
Phase III Will Decide Whether CG2001 Reaches Global Markets
DaySpring is now in talks with regulatory authorities — including China's National Medical Products Administration — to design the Phase III trial. Phase II tested 110 men in China. Phase III will need a larger, more diverse group to satisfy global regulators. The company has not yet announced a timeline or trial size, AP News reported.
The Phase III trial will also face a tougher test. Regulators may require CG2001 to prove it works better than existing monotherapies — not just a placebo. If it clears that bar, millions of men who currently avoid finasteride due to fear of side effects could have a new option backed by full regulatory approval.
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