Paid partnership

Research company Follicum
takes in 56 million SEK


June 20th - 4th of July 2019

(Subtitle in English)

Hair loss affects millions of men and women worldwide each year

Follicum develops drugs for those suffering from hair loss to help them grow their hair back. The company has now brought on new strategic investors

Hair loss is a well-known problem for countless people worldwide, affecting both women and men. It can lead to mental disorders due to the suffering and insecurity it can cause. We want to help people grow their hair back, explains Jan Alenfall, CEO of Follicum. We do this by developing products for hair loss that are effective and easy to use.

Limited competition in a market worth SEK 54 billion per year exists

The demand for hair loss products is staggering. About half of all men and around 30% of middle-aged women suffer from hair loss.

In 2015, the global market was estimated to be worth $7.3 billion, of which drugs accounted for nearly half. Future forecasts indicate that the market will grow to US $11.8 billion by 2024. If pharmaceuticals make up half of the market, it would be worth USD $5.9 billion (54 billion SEK) a year globally. Additionally, there is a large, unmet need for effective and safe treatments, meaning the potential is substantial. At the moment, there are only two drugs on the market - they often work poorly and can cause severe negative side effects.

For women, common side effects of existing hair loss products include hair growth on fingers and arms while a large percentage of men report reduced sex drives, says Jan Alenfall. Our product, FOL-005, on the other hand, has not shown any negative side effects at all. We therefore hope to develop and provide to the market a drug that is both better and safer than solutions.

– We want to help people
grow their hair back

CEO - Jan Alenfall

Hair loss in numbers

Source: Biostock

– Future forecasts indicate that the market will grow to US $11.8 billion by 2024

A big step towards the
finished product

Follicum has achieved the unusual in drug development. Since its listing in 2014, the company has kept its promises and delivered on time within published budgets. Follicum’s track record serves as a testimony to the company's capacity to drive its projects forward according to plan. The company will now take the next step and start a new clinical phase IIa study towards the end of the year 2019-2020. The goal is to produce a cream for hair loss.

Over several years of research, we have demonstrated that our drug project FOL-005 works, says Jan Alenfall. We have previously seen that people who’ve recently started losing their hair can regain hair growth via our injections. We have also been able to show that the treatment works when used as a cream on animals. The advantage of the product is that it is very easy to use. Our plan now is to move forward and test the product’s efficacy on humans.

– There is also a biological connection between hair loss and diabetes, which serves as another one of the company's research projects

The business model, the future
and the connection with diabetes

Follicum's business model is to develop interesting products, which would then be licensed to large pharmaceutical companies. After everything goes according to plan during the upcoming study for FOL-005, Follicum will then license the hair project to an international partner. We anticipate such an agreement to be made towards the end of 2020 and beginning of 2021. Since no side effects have yet been observed, the product will likely penetrate the market within three to five years from early 2021.

- There are not that many projects in hair loss, so the competition for us is relatively small, says Jan Alenfall. Recently, a drug project valued at US $35 million was sold. A successful out-licensing also offers royalty on product sales, so it's big money one could expect.

There is also a biological connection between hair loss and diabetes, which serves as another one of the company's research projects. Hair loss can, for example, serve as an early sign of type 2 diabetes. The lack of insulin seems to cause the hair to grow more slowly or not at all in diabetics. Follicum therefore runs another project, FOL-014, garnering significant interest from major players who focus on diabetes products. The experience and the combined knowledge from the hair study will be a great advantage when Follicum goes ahead with its diabetes research. The development processes are similar to each other. The company has several planned milestones and preclinical studies also in this area. The research is currently being conducted at an earlier stage, but if everything goes as planned, the diabetes project can be licensed already by Autumn 2020.

Strategic investors and guaranteed rights issue

To finance the hair and diabetes projects, Follicum must raise SEK 56 million through: i) a directed issue of SEK 25 million to strategic investors such as Recipharm Venture Fund, Mats Paulsson's Foundation for Research, Innovation and Community Building and Nordic Cross Small Cap Edge and ii) a rights issue to existing shareholders. Both new issues will be carried out at a subscription price of SEK 2.20 per new share.

- We are going to complete the fundraise in order to maintain the high development pace in both projects, concludes Jan Alenfall. The more milestones we succeed in achieving and the closer to market we get, the greater value we deliver to our shareholders. The next two years are very exciting to look forward to!

Emission Facts

Preliminary timetable for the Rights Issue (all dates refer to 2019)

(Swipe left)

Shareholders in Follucum have preferential rights to subscribe for shares. Three (3) existing shares held on the record date on June 17, 2019 entitles to one (1) subscription right. One (1) subscription right entitles the holder to subscribe one (1) new share

The subscription period will run from June 20 to July 4, 2019

The subscription price is set at SEK 2.20 per share

Upon full subscription of the Rights Issue, Follicum will receive
approximately SEK 56 million before issue costs, of a directed share of SEK 25 million

Special application form for subscription of shares
with the support of subscription rights in Follicum*

Application form for subscription of shares
WITHOUT support of subscription rights in Follicum*

(för teckning utan stöd av teckningsrätter)*

* Se Villkor & Anvisningar för teckning med stöd av teckningsrätter.


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