A central challenge in embryonic development is to understand how growth and pattern are coordinated to direct emerging new territories during morphogenesis. Here, we report on a signaling cascade that links cell proliferation and fate, promoting formation of a distinct progenitor domain within the developing chick hypothalamus. We show that the downregulation of Shh in floor plate-like cells in the forebrain governs their progression to a distinctive, proliferating hypothalamic progenitor domain. Shh downregulation occurs via a local BMP-Tbx2 pathway, Tbx2 acting to repress Shh expression. We show in vivo and in vitro that forced maintenance of Shh in hypothalamic progenitors prevents their normal morphogenesis, leading to maintenance of the Shh receptor, ptc, and preventing progression to an Emx2(+)-proliferative progenitor state. Our data identify a molecular pathway for the downregulation of Shh via a BMP-Tbx2 pathway and provide a mechanism for expansion of a discrete progenitor domain within the developing forebrain.

Supplementary material available online at

Ephrins and their tyrosine kinase receptors (Ephs) are a highly conserved family of signaling proteins with various functions during embryonic development. Among others, Eph/ephrin signaling is involved in regulating axon guidance, cell migration, and tissue border formation through inducing modifications of the actin cytoskeleton and cell adhesion. During development ephrins and Ephs are expressed in spatially and temporarily regulated patterns in a wide range of tissues. Here, we analyzed the expression of seven members of the Eph and four member of the ephrin family during early stages of mouse inner ear development by whole-mount in situ hybridization. We detected expressions of EphA2, EphA4, EphA7, EphB1, ephrinA4, and ephrinA5 in and around the forming otic placode between embryonic day (E) 8.5 and E10, and report their detailed expression patterns. Our results reveal dynamic expression of several members of the ephrin/Eph family consistent with functions in otic placode development, invagination and neuroblast delamination. Developmental Dynamics 240:1578-1585,