Mesoderm induction during Xenopus development has been extensively stu
died, and two members of the transforming growth factor-beta family, a
ctivin beta B and Vg1, have emerged as candidates for a natural induce
r of dorsal mesoderm. Heretofore, analysis of Vg1 activity has relied
on injection of hybrid Vg1 mRNAs, which have not been shown to direct
efficient secretion of ligand and, therefore, the mechanism of mesoder
m induction by processed Vg1 protein is unclear. This report describes
injection of Xenopus oocytes with a chimeric activin-Vg1 mRNA, encodi
ng the pro-region of activin beta B fused to the mature region of Vg1,
resulting in the processing and secretion of mature Vg1, Treatment of
animal pole explants with mature Vg1 protein resulted in differentiat
ion of dorsal, but not ventral, mesodermal tissues and dose-dependent
activation of both dorsal and ventrolateral mesodermal markers. At hig
h doses, mature Vg1 induced formation of 'embryoids' with a rudimentar
y axial pattern, head structures including eyes and a functional neuro
muscular system. Furthermore, truncated forms of the activin and FGF r
eceptors, which block mesoderm induction in the intact embryo, fully i
nhibited mature Vg1 activity. To examine the mechanism of inhibition,
we have performed receptor-binding assays with radiolabeled Vg1. Final
ly, follistatin, a specific inhibitor of activin beta B which is shown
not to block endogenous dorsal mesoderm induction, failed to inhibit
Vg1. The results support a role for endogenous Vg1 in dorsal mesoderm
induction during Xenopus development.