A Sonic hedgehog (Shh) response element was identified in the chicken
ovalbumin upstream promoter-transcription factor II (COUP-TFII) promot
er that binds to a factor distinct from Gli, a gene known to mediate S
hh signaling. Although this binding activity is specifically stimulate
d by Shh-N (amino-terminal signaling domain), it can also be unmasked
with protein phosphatase treatment in the mouse cell line P19, and ind
uction by Shh-N can be blocked by phosphatase inhibitors. Thus, Shh-N
signaling may result in dephosphorylation of a target factor that is r
equired for activation of COUP-TFII-, Islet1-, and Gli response elemen
t-dependent gene expression. This finding identifies another step in t
he Shh-N signaling pathway.