The initial stages of pancreatic development occur early during mammalian e
mbryogenesis(1), but the genes governing this process remain largely unknow
n. The homeodomain protein Pdx1 is expressed in the developing pancreatic a
nlagen from the approximately 10-somite stage(2,3), and mutations in the ge
ne Pdx1 prevent the development of the pancreas(3-5). The initial stages of
pancreatic development, however, still occur in Pdx1-deficient mice(3). Hl
xb9 (encoding Hb9; ref. 6) is a homeobox gene that in humans has been linke
d to dominant inherited sacral agenesis(7) and we show here that Hb9 is exp
ressed at early stages of mouse pancreatic development and later in differe
ntiated beta-cells. H1xb9 has an essential function in the initial stages o
f pancreatic development. In absence of Hlxb9 expression, the dorsal region
of the gut epithelium fails to initiate a pancreatic differentiation progr
am. In contrast, the ventral pancreatic endoderm develops but exhibits a la
ter and more subtle perturbation in beta-cell differentiation and in islet
cell organization, Thus, dorsally Hlxb9 is required for specifying the gut
epithelium to a pancreatic fate and ventrally for ensuring proper endocrine
cell differentiation.