Curology has expanded to prescription hair care.
On Thursday, Curology launched Hair Formulas Rx, a prescription serum that addresses Androgenetic Alopecia, commonly known as male and female pattern hair loss. The primary active ingredient is Minoxidil, which is found in lower over-the-counter strengths in products by Rogaine. The 10-year-old brand has mostly concentrated on the acne space but has expanded over the years to tackle anti-aging through both the Curology brand and its sub-brand Agency, which launched in 2021.
Heather Wallace, CEO of Curology, said that the newer understanding of the relationship between scalp care and skin care allowed the teledermatological company to expand to hair. She said the total addressable market of the OTC and Rx hair-loss-treatment space is $5 billion. Notably, there are many OTC and Rx players in the space, including Vegamour, Nutrafol, Hims & Hers, Keeps, and Ro. Wallace said Curology’s strategy is unique because it targets customers of traditional OTC retail offerings by promising higher-efficacy prescriptions. Steve Siegal, chief marketing and innovation officer at Curology, added that 63% of male consumers and 47% of female consumers notice hair loss before the age of 30. Curology’s customer base is 86% female and 14% male.
“A lot of people aren’t even addressing their hair loss; they’re putting it off. And if they do [address it], they end up starting with lifestyle changes first, like diet and exercise. Then they go into OTC [treatment] options, which take more of a one-size-fits-all [approach],” said Siegal.
In an Oct. 2022 press release regarding Wallace’s appointment to CEO, Curology stated that it expected to earn $200 million in revenue in 2022, reflecting a 75% compound annual growth rate since 2017. The company also reported that it had served more than 5 million patients since 2014 via its telehealth services. In Dec. 2022, Curology expanded to Target, and it drove $19 million in sales through the retailer in 2023. More recently, the company expanded to Amazon. Wallace declined to share sales expectations for Hair Formula Rx but said they could be “highly incremental.”
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“[We asked ourselves,] ‘What will innovation look like for us in the future?’ And, ‘What is the low-hanging fruit, in terms of things we can do quickly?’ And treating hair loss came top of mind. … There’s an unmet need and an opportunity to bring people new solutions and new ideas,” said Wallace.
According to Mintel data, 26% of hair-care users between the ages of 18-44 state hair loss as a top concern. That percentage increases as adults inch closer to 45 years old. Furthermore, over half of adults use some type of at-home hair loss treatment, and 40% of those people expect hair growth as a benefit.
“While this data doesn’t point to Rx interest, it does show that the use of specialized treatment formats is certainly buzzing. And, for many, they’re being used to benefit hair growth or combat loss preventatively,” said Carson Kitzmiller, senior beauty and personal care analyst at Mintel. “We are shifting toward a desire for more efficient and potent beauty and personal care products and treatments.”
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To play into typical shopping pattern, Curology launched a hair-loss destigmatizing campaign on February 1 called “Follicly Fit.” The retro, 1980s-themed workout video features bumping ‘80s melodies with a series of dermatologists explaining that hair follicles live in the skin and that, to achieve better hair growth, people should consult Curology. Curology plans to promote the campaign via a full-funnel approach with “heavy investments” in streaming video ads, publicity, influencer marketing and paid social ads, said Siegal.
“We tried hard to put the dermatologists front and center to emphasize the expertise that they can bring. And we want to reassure people that there are options out there beyond what they’re currently considering,” he said.
