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The cells of the adult follicular dermal papilla retain a powerful hair-inductive capacity acquired during embryonic hair morphogenesis. This inductive capacity is the basis of a cell therapy called follicular cell implantation in which dermal papilla cells from a small number of donor follicles are expanded in culture and then implanted into a bald region of scalp. In this manner, many new follicles can be formed from the cells of a few.
http://www.thieme-connect.com/ejournals/abstract/sps/doi/10.1055/s-2005-871735