A sequential morphological study of the initial cellular events in teratoma induction by displaced visceral yolk sac after foetectomy in rats was undertaken. This study led to the observation that apart from proliferation of cells displaying definite endodermal or mesodermal characteristics, a population of poorly differentiated cells appeared some days after the surgical procedure. It is very likely that these poorly differentiated cells are stem cells from which differentiated structures originate afterwards by a process of redifferentiation. The development of granulation tissue rich in capillaries seems to enhance this process. Similarities and differences with blastema formation are discussed.

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