Glucagon and insulin are first detectable at the onset of rat pancreas organogenesis. Initially, the specific activity of glucagon is approximately 100-fold higher than that of insulin. At this early stage, endocrine storage granules, similar to a granules, are identifiable in electron micrographs. The granule characteristics, as well as the relative hormone levels, suggest that the early population of differentiated endocrine cells is in fact composed of glucagon-producing (A) cells. This high level of glucagon is present in the embryo much earlier than the metabolic processes thought to be controlled by this hormone. Moreover, glucagon-producing cells may be the first endocrine cells to differentiate. Other known endocrine products accumulate later, during the terminal stages of organogenesis. These observations suggest that glucagon may have a regulatory function in early embryogenesis.The islets of the differentiated rat pancreas contain A and B cells, which are responsible for the production of glucagon and insulin, respectively, and D cells, whose function has yet to be defined. Until recently, the endocrine cells have been assumed to differentiate well after the appearance of the pancreatic diverticulum (3-5). However, Clark and Rutter (6), using a sensitive immunoassay, detected low levels of insulin at the time of the initial formation of the pancreatic diverticulum. Moreover, Wessells and Evans (7) (8) were decapitated, and the embryos of an appropriate gestational age were transferred to dissecting dishes containing Earle's balanced salt solution and 1.0% bovine-serum albumin. Pancreatic rudiments, excluding most of the associated mesenchyme, were excised and placed in polyethylene tubes (microfuge tubes, Spinco) on dry ice. The samples were stored at -70°until the time of assay, when they were thawed and subsequently sonicated in an aliquot of glass-distilled water. The crude homogenates were immediately monitored for hormone activity and protein content. Routinely, three dilutions were made of each sample, and each dilution was assayed in duplicate.Insulin Assay. Insulin was assayed according to a micromodification of the double-antibody technique of Morgan and Lazarow (9). Previously (6) beef insulin was used as a standard, while our more recent studies use the homologous rat insulin and a different combination of reagents to enhance the precision and sensitivity of the assay. In the current procedure, dilutions of reagents, standards, and samples are made with 0.5% crystalline bovine-serum albumin (Miles Laboratories) in 0.05 M phosphate (pH 7.0). The assay is carried out in three successive stages on each sample: