One of the first companies to begin experimenting with hair cloning was Intercytex. Researchers at the company were convinced that their approach was the cure for baldness, and if the technology is fully developed, they can basically eliminate hair loss due to hereditary factors. This therapy would also eliminate the need for donor hair, as it can be simply grown from the patient's own cells.
Intercytex tried to clone new hair follicles from the stem cells harvested from the back of the neck. They hoped that if they multiplied (cloned) the follicles and then implanted them back in the scalp in the bald areas they would be successful in regrowing the hair itself. They tested the method in their Phase II trials, which showed very promising results as two-thirds of the bald male patients were able to grow new hair after the treatment.
The company was hoping to complete the research so they can make it available to the public, so they began Phase III trials. They estimated they would be able to finish the process in a few years. However, these tests did not show the expected progress. In 2008 Intercytex admitted that they failed in fully developing the hair cloning therapy and decided to discontinue all research.
This was not solely the result of the failed tests, as the company's financial background also became unstable in 2008 and they had to implement several cost-cutting measures. They laid off a great number of staff members and cut funding to the research projects such as hair cloning. In 2010 they went out of business.