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Finasteride is a medication that is primarily used to treat male pattern baldness and benign prostatic hyperplasia. One of the notable side effects associated with its use is the loss of sexual function, which can manifest as decreased libido, erectile dysfunction, or ejaculation disorders. This occurs because finasteride works by inhibiting the conversion of testosterone to dihydrotestosterone (DHT). DHT plays a significant role in the normal functioning of the male reproductive system, and alterations in its levels can lead to sexual side effects.

In contrast, the other options such as increased appetite, weight gain, and dry skin are not commonly linked to finasteride. While some medications can cause these side effects, they do not specifically correlate with the mechanism of action or typical side effects observed with finasteride. Understanding the pharmacological effects of finasteride is crucial for those considering it as a treatment option, as it helps manage expectations regarding potential adverse effects.