THE secreted protein products of the hedgehog (hh) gene family are ass
ociated with local and long-range signalling activities that are respo
nsible far developmental patterning in multiple systems, including Dro
sophila embryonic and larval tissues(1-8) and vertebrate neural tube,
limbs and somites(9-15). In a process that is critical for full biolog
ical activity, the hedgehog protein (Hh) undergoes autoproteolysis to
generate two biochemically distinct products, an 18K amino-terminal fr
agment, N, and a 25K carboxy-terminal fragment, C (ref. 16); mutations
that block autoproteolysis impair Hh function. We have identified the
site of autoproteolytic cleavage and find that it is broadly conserve
d throughout the hedgehog family. Knowing the site of cleavage, we wer
e able to test the function of the N and C cleavage products in Drosop
hila assays. We show here that the N product is the active species in
both local and long-range signalling. Consistent with this, all twelve
mapped hedgehog mutations either affected the structure of the N prod
uct directly or otherwise blocked the release of N from the Hh precurs
or as a result of deletion or alteration of sequences in the C domain.