During embryogenesis, inductive interactions underlie the development
of much of the body plan. In Xenopus laevis factors secreted from the
vegetal pole induce mesoderm in the adjacent marginal zone; members of
both the transforming growth factor-beta (TGF-beta) and fibroblast gr
owth factor (FGF) ligand families seem to have critical roles in this
process(1). Here we report the identification and characterization of
laloo a novel participant in the signal transduction cascade linking e
xtracellular, mesoderm-inducing signals to the nucleus, where alterati
on of cell fate is driven by changes in gene expression. Overexpressio
n of laloo, a member of the Src-related gene family, in Xenopus embryo
s gives rise to ectopic posterior structures that frequently contain a
xial tissue. Laloo induces mesoderm in Xenopus ectodermal explants; th
is induction is blocked by reagents that disrupt the FGF signalling pa
thway. Conversely, expression of a dominant-inhibitory Laloo mutant bl
ocks mesoderm induction by FGF and causes severe posterior truncations
in vivo. This work provides the first evidence that a Src-related kin
ase is involved in vertebrate mesoderm induction.