The answer is osteogenic cells can differentiate into osteoclasts. Osteogenic cells are stem cells that are located in the surface lining of bones and in bone marrow. Immature osteogenic cells are found in the deep layers of the periosteum and the marrow, when they differentiate, they develop in osteoblasts. Osteoblasts are created by precursor cells and help regulate the entire process of bone modification. Osteoclasts break down bone material.