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Although it is understandably tight-lipped about the exact mechanism behind its success, one probably enlists the help of cells called keratinocytes, which interact naturally with the dermal papilla cells of the hair follicle and secrete a chemical factor that supports their growth.
ECONOMIST: A cure for baldness
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Intercytex's second approach seems to involve culturing the dermal papilla cells with proteins that take part in signalling during the process that creates hair.
ECONOMIST: A cure for baldness
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That observation is only useful, though, if you can multiply dermal papilla cells and do so in a way that allows them to keep their ability to induce hair growth.
ECONOMIST: A cure for baldness