FDA Approves New Drug, Olumiant, for Alopecia Areata Alopecia areata is a condition that can cause hair loss. Federal regulators have approved the drug Olumiant for the treatment of severe alopecia areata. The medication can be used in place of the painful injections now sometimes prescribed. However, some dermatologists say they are reluctant to prescribe Olumiant to some people due to the potential for serious side effects.