Proper regulation of chondrocyte differentiation is necessary for the
morphogenesis of skeletal elements, yet little is known about the mole
cular regulation of this process, A chicken homolog of Indian hedgehog
(Ihh), a member of the conserved Hedgehog family of secreted proteins
that is expressed during bone formation, has now been isolated. Ihh h
as biological properties similar to those of Sonic hedgehog (Shh), inc
luding the ability to regulate the conserved targets Patched (Ptc) and
Gli. Ihh is expressed in the prehypertrophic chondrocytes of cartilag
e elements, where it regulates the rate of hypertrophic differentiatio
n, Misexpression of Ihh prevents proliferating chondrocytes from initi
ating the hypertrophic differentiation process, The direct target of I
hh signaling is the perichondrium, where Gli and Ptc flank the express
ion domain of Ihh, Ihh induces the expression of a second signal, para
thyroid hormone-related protein (PTHrP), in the periarticular perichon
drium, Analysis of PTHrP (-/-) mutant mice indicated that the PTHrP pr
otein signals to its receptor in the prehypertrophic chondrocytes, the
reby blocking hypertrophic differentiation, In vitro application of He
dgehog or PTHrP protein to normal or PTHrP (-/-) limb explants demonst
rated that PTHrP mediates the effects of Ihh through the formation of
a negative feedback loop that modulates the rate of chondrocyte differ
entiation.