Growth and differentiation of postnatal hair follicles are controlled by re
ciprocal interactions between the dermal papilla and the surrounding epider
mal hair precursors. The molecular nature of these interactions is largely
unknown, but they are likely to involve several families of signaling molec
ules, including Fgfs, Wnts and Bmps, To analyze the function of Bmp signali
ng in postnatal hair development, we have generated transgenic mice express
ing the Bmp inhibitor, Noggin, under the control of the proximal Msx2 promo
ter, which drives expression in proliferating hair matrix cells and differe
ntiating hair precursor cells. Differentiation of the hair shaft but not th
e inner root sheath is severely impaired in Msx2-Noggin transgenic mice. In
addition to hair keratins, the expression of several transcription factors
implicated in hair development, including Foxn1 and Hoxc13, is severely re
duced in the transgenic hair follicles, Proliferating cells, which are norm
ally restricted to the hair matrix surrounding the dermal papilla, are foun
d in the precortex and hair shaft region. These results identify Bmps as ke
y regulators of the genetic program controlling hair shaft differentiation
in postnatal hair follicles.