Baldness or hair loss has been treated using pharmaceutical drugs and/or hair transplant surgery. The present invention relates to an improved method for treating baldness. In one aspect, there is provided a method for inducing hair follicle formation in a dermal layer lying beneath an outer skin surface, comprising delivering inductive dermal sheath cells and/or inductive dermal papilla cells directly into the dermal layer using a controlled delivery device. Delivery of the inductive cells need not be into pre-existing pores. Use of a controlled delivery device for the treatment of baldness is a further aspect of the invention.