The pharma giant led a $100 million equity round for the generative AI drug company behind a first-in-class hair loss and endometriosis treatment
Eli Lilly, the company that made weight-loss injectables a cultural phenomenon with Zepbound and Mounjaro, is now betting $40 million that AI can design a shot to cure baldness.
The pharma heavyweight led a $100 million stock offering in Absci Corporation, a generative AI drug company headquartered in Vancouver, Washington. Lilly purchased shares at $7.41 each, with Adage, BVF Partners, Columbia Threadneedle, Invus, and Redmile also participating in the round. The market’s reaction was swift: ABSI shares surged approximately 36% on the news.
What Absci is actually building #
The money is earmarked to advance ABS-201, a monoclonal antibody designed entirely by Absci’s AI-powered Integrated Drug Creation platform. It targets the prolactin receptor, a hormone receptor linked to both hair growth and reproductive health.
ABS-201 is the first AI-designed therapeutic from Absci to reach human trials, engineered as a first-in-class injectable antibody for two conditions that currently have zero approved injectable treatments: androgenetic alopecia (pattern baldness) and endometriosis.
The financing announcement landed on the same day as interim Phase 1 data from the HEADLINE trial, which reported positive results on safety and pharmacokinetics. The trial began dosing its first participants in December 2025, and Absci expects further clinical readouts over the next two years.
Preclinical data had already shown that ABS-201 demonstrated high affinity for the prolactin receptor and produced signals of hair growth compared to minoxidil, the active ingredient in Rogaine.
Why Lilly, and why now #
There’s been quiet speculation in the industry about hair-loss side effects associated with certain drugs already on the market. Absci has not publicly drawn any connection between those concerns and its own work, keeping its messaging focused squarely on ABS-201’s clinical potential.
What this means for investors #
Androgenetic alopecia affects a significant portion of both men and women globally, and current treatments are limited to topical solutions like minoxidil, oral medications like finasteride, and expensive surgical options. Endometriosis affects roughly 10% of women of reproductive age worldwide and remains notoriously difficult to treat effectively.
Absci itself has indicated that further clinical readouts will unfold over the next two years, meaning Phase 2 and Phase 3 trials remain ahead.
Investors tracking Absci should keep their eyes on the next set of HEADLINE trial data, which will determine whether the early safety and pharmacokinetic signals hold up in a larger patient population, and any follow-on partnerships or financing rounds that could signal whether Lilly’s confidence is shared across the industry.
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