Olfactory and lens placode formation is controlled by the hedgehog-interacting protein (Xhip) in Xenopus

The integration of multiple signaling pathways is a key issue in several aspects of embryonic development. In this context, extracellular inhibitors of secreted growth factors play an important role, which is to antagonize specifically the activity of the corresponding signaling previously described as a Hedgehog-specific molecule. We provide evidence that the Hedgehog interacting protein (Hip) from Xenopus. antagonist in the mouse, interferes with Wnt-8 and eFgf/Faf-8 signaling pathways as well. To address the function of Hip during early embryonic development, we performed gain- and loss-of-function studies in the frog. Overexpression of Xhip or mHip1 resulted in a dramatic increase of retinal structures and larger olfactory placodes primarily at the expense of other brain tissues. Furthermore, loss of Xhip function resulted in a suppression of olfactory and lens placode formation. Therefore. the localized expression of Xhip may counteract certain overlapping signaling activities, which inhibit the induction of distinct sensory placodes. (C) 2004 Elsevier Inc. All rights reserved.