The specification of neural fate in Xenopus embryos has been shown to
be under regulation by negative factors. The secreted protein bone mor
phogenetic protein-4 (BMP4) has been identified as one of these factor
s: in the early gastrula ectoderm, BMP4 can both inhibit neural fate a
nd induce epidermis. In this study, we show that two other Xenopus BMP
genes, BMP2 and BMP7, are endowed with the same types of activities.
First, we show that expression of a dominant negative form of the BMP2
ligand, which blocks normal processing of the wild-type ligand, cause
s neuralization of Xenopus ectoderm. Second, we have isolated the Xeno
pus BMP2/7 receptor (XALK2) and generated a constitutively active muta
nt that signals in a ligand-independent manlier. We show that signals
from the activated BMP2/7 receptor also inhibit neuralization and indu
ce epidermis in dissociated ectoderm cells. Consistent with both findi
ngs we show that secreted BMP2 and BMP7 ligands can also mediate neura
l inhibition and epidermal induction. These results suggest that both
BMP2 and BMP7 may be involved independently or together with BMP4 in t
he inhibition of the neural fate and the onset of the epidermal induct
ion pathway in vivo. This further supports the idea that epidermal ind
uction is due to the effects of multiple signals from heterogeneous BM
P genes. (C) 1997 Academic Press.