Hepatocytes differentiate from the endoderm during embryonic development. R
ecent studies show, however, that hepatocytes can also be derived from rare
cells that reside in the pancreas, bone marrow, and brain. Indeed, the lat
est discoveries indicate that embryonic hepatocytes normally arise by diver
sion of an endodermal cell population that would otherwise default to a pan
creatic fate. Convergent FGF and BMP signals from distinct mesodermal cell
types control this transition. Molecular signals that govern the differenti
ation of hepatocytes from non-endodermal cells and the role of such cells i
n normal liver physiology remain to be discovered.