Specific signaling molecules play a pivotal role in the induction and
specification of tissues during early vertebrate embryogenesis. BMP-4
specifies ventral mesoderm differentiation and inhibits neural inducti
on in Xenopus, whereas three molecules secreted from the organizer, no
ggin, follistatin and chordin dorsalize mesoderm and promote neural in
duction. Here we report that follistatin antagonizes the activities of
BMP-4 in frog embryos and mouse teratocarcinoma cells. In Xenopus emb
ryos follistatin blocks the ventralizing effect of BMP-4. In mouse P19
cells follistatin promotes neural differentiation. BMP-4 antagonizes
the action of follistatin and prevents neural differentiation. In addi
tion we show that the follistatin and BMP-4 proteins can interact dire
ctly in vitro. These data provide evidence that follistatin might play
a role in modulating BMP-4 activity in vivo. (C) 1997 Elsevier Scienc
e Ireland Ltd.