Signals released by the Spemann organizer of the amphibian gastrula ca
n directly induce neural tissue from ectoderm and can dorsalize ventra
l mesoderm to form muscle. The secreted polypeptide noggin mimics thes
e activities and is expressed at the appropriate time and place to par
ticipate in the organizer signal. Neural induction and mesoderm dorsal
ization are antagonized by bone morphogenetic proteins (BMPs), which i
nduce epidermis and ventral mesoderm instead. Here we report that nogg
in protein binds BMP4 with high affinity and can abolish BMP4 activity
by blocking binding to cognate cell-surface receptors. These data sug
gest that noggin secreted by the organizer patterns the embryo by inte
rrupting BMP signaling.