What Is Liposomal Finasteride? Everything You Need To Know

Finasteride is a cornerstone in the ever-evolving world of hair loss treatments. While the oral form of finasteride has been approved by the U.S. Food & Drug Administration (FDA) since 1988, innovations like liposomal finasteride are pushing the boundaries of what the popular hair loss medication can do.

Imagine your finasteride wrapped in a tiny protective bubble, ensuring it reaches the (literal) root of the problem more effectively and with fewer side effects. It sounds too good to be true — but is it?

Here, we'll go through the ins and outs of liposomal topical finasteride, including what the research says (spoiler alert: not much), who may be a good candidate for it, and what liposomal actually means.

Before we get too deep into liposomal finasteride specifically, it’s important to understand how a liposomal formulation works, as it’s used for many drugs. A liposomal formulation is simply a drug delivery system, or a way of getting a drug into the body effectively. 

Liposomes are microscopic spherical vesicles (like little sacks or bladders) that encapsulate a drug. Put simply, in this type of formula a drug is encased in a fatty layer made up of either natural or synthetic lipids (fats and oils). 

Liposomes can be used orally or topically, but we’ll refer to their topical application in this article. 

Research shows that potential advantages of liposomal formulations include enhancing transdermal application (meaning applied to the skin but carried elsewhere), reducing side effects, and protecting the drug and its active ingredients from degradation.

This is all a bit complicated. If it’s tough to visualize, you can imagine liposomal formulations as bubble wrap envelopes. Nothing changes about the inner contents when it’s wrapped in bubble wrap, but instead, the packaging provides a protective barrier that helps ensure the important thing inside arrives where it needs to be unscathed.

We’ll get into liposomal topical finasteride and how it works in just a second, but first, here’s a quick refresher on how finasteride works more generally to slow hair loss and spur hair regrowth. 

Finasteride targets the male hormone DHT, which is responsible for androgenetic alopecia (aka male pattern hair loss). Specifically, finasteride blocks the 5 alpha-reductase enzyme, which converts testosterone to dihydrotestosterone (DHT).

Whether taken orally or used as a topical treatment, finasteride prevents DHT from entering the hair follicles. This is good, because when DHT enters the follicles, it causes them to miniaturize, leading to hair loss. 

Finasteride is highly effective — research shows that oral finasteride treatment stopped further hair loss in 83 percent of men with pattern hair loss who took it for two years. It seems to work especially well for men over 30 or those with more severe AGA.

Liposomal finasteride is a type of topical finasteride that encases the active ingredients in a liposome (those microscopic lipid sacks we mentioned before). This is done to advance the delivery and absorption of finasteride into the scalp, encouraging hair growth. 

While this new finasteride delivery system might enhance topical finasteride results theoretically, more high-quality research is needed to say that definitively.

There is not much information available specifically on the side effects of liposomal topical finasteride. That said, it seems they most likely are similar to those of all types of topical finasteride. 

Research shows that side effects of topical finasteride are rare and typically limited to contact dermatitis, itchiness, burning, or redness. Beyond these, other topical finasteride side effects may include lightheadedness or headaches.

As far as the potential disadvantages of liposomal drugs in general, research indicates that they include:

• High cost

• Possibility of poor manufacturing (including a large particle size or poor ingredients)

• Possibility of instability (it may degrade easily)

• Increased intracellular delivery, which could increase adverse effects

If you are experiencing side effects from oral finasteride, topical finasteride (which includes liposomal formulations) can be a better choice. That’s because the side effects of topical finasteride tend to be localized to the scalp (as opposed to systemic absorption).

Potential side effects of oral finasteride in its oral form can range from erectile dysfunction (ED) and decreased libido to dizziness and depression. That said, while in rare cases oral finasteride can lead to adverse events or sexual side effects, it does not cause issues for the vast majority of men.

For instance, one study found that sexual side effects of finasteride — including decreased libido, ED, and ejaculatory disorders — occurred in less than 2 percent of men and typically resolved over time in both men who did and did not stay on the medication. 

Further, just one percent of men in FDA clinical trials for finasteride discontinued the medication due to adverse sexual side effects. 

When it comes to how well they work, both oral and topical formulations of finasteride have been proven effective. 

A 2022 clinical trial found that topical finasteride at 0.25% strength significantly improved hair counts compared to placebo. After 24 weeks, the study also found that the topical solution’s effect on hair density was similar to that of oral finasteride. 

In other words, if you’re concerned about the risk of side effects or prefer topical formulations, liposomal finasteride or another type of topical finasteride could be a good choice. 

On the other hand, if you struggle to remember to wash your face at night or apply sunscreen, you may find it difficult to apply topical finasteride daily. In that case, oral finasteride is probably a better fit.

There is minimal research comparing liposomal topical finasteride to other topical finasteride formulations. 

However, one study on mice found that liposomal finasteride had a “fivefold” higher deposition in the skin compared to a plain drug solution and conventional gel (aka topical finasteride that was not liposomal).

Here’s where things get a little muddy though. The type of liposomal delivery method also matters — one animal study noted that while topical liposomal formulations have been used widely for their safety and improved clinical efficacy, they can sometimes get trapped in the upper skin layers, where they won’t be deep enough to have much effect. 

A new type of liposomal delivery system known as nano-transferases (NTF) may improve drug delivery. The study above showed NTF finasteride has improved skin permeation compared to a control gel formula.

And here’s a paradox for you: Research shows that liposomes can either enhance or reduce skin penetration. It all seems to depend on the drug's molecular weight and liposome composition. 

So long story short, the effectiveness of liposomal finasteride really depends on the type of liposomal finasteride you’re getting, which can be tough to know.

Liposomal finasteride doesn’t look or feel any different than other types of topical finasteride, and the application process is typically the same.

It’s important to carefully read the label before applying topical finasteride, but generally, it should be applied to areas where you’re experiencing hair loss or thinning once daily. For instance, our topical finasteride and minoxidil spray needs to be misted on the scalp just one time a day.

You risk not seeing noticeable results if you don’t use topical hair loss medications as directed. If you’re unsure how best to use liposomal gel or another type of topical finasteride, consult a dermatologist or other healthcare professional.

Also keep in mind when using any type of finasteride that while the medication starts working on DHT levels immediately, it typically takes about three months of daily use to see benefits in hair. This means patience is key — don’t give up if you’re not immediately seeing new hair growth.

Still on the fence about liposomal finasteride? Here’s the TL;DR:

• Finasteride is a celebrated treatment for androgenic alopecia. Liposomal finasteride is a different way of delivering topical finasteride to the scalp and hair follicles. Liposomal means that medication is encased in a protective lipid carrier, and the theory is that liposomes can help hair follicles take in more finasteride to help hair regrow.

• While liposomal delivery systems show promise in enhancing drug efficacy and reducing side effects, research on liposomal finasteride is limited. We can’t recommend it over any other type or formulation of finasteride until more research is available.

• Liposomal formulas are also usually more expensive and potentially less regulated than other topical finasteride formulations. Keep this in mind when considering your options.

If you want to learn more about whether finasteride is right for you, you can set up an appointment with one of our healthcare providers online.