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RESEARCH ARTICLE INTRODUCTIONRecent studies suggest that the most promising approach for the in vitro derivation of insulin-producing pancreatic beta-cells from stem cells is by recapitulating embryonic beta-cell differentiation (D'Amour et al., 2006). The in vitro generation of fully functional beta-cells for transplantation, however, will require further improvement of existing differentiation protocols. Such refinement will require detailed knowledge of the molecular mechanisms that underlie beta-cell differentiation. Lineage-tracing studies in mice have shown that all pancreatic lineages, which include the exocrine and endocrine compartment, arise from a common, proliferative progenitor cell population that is marked by the transcription factor Pdx1 (Gu et al., 2002). Expression of the transcription factor Ngn3 (also known as Neurog3 -Mouse Genome Informatics) further restricts progenitors to five distinct endocrine cell fates: alpha-, beta-, delta-, PP-or epsilon-cells, which produce the hormones glucagon, insulin, somatostatin, pancreatic polypeptide and ghrelin, respectively (Gu et al., 2002;Heller et al., 2005;Prado et al., 2004). Initially, scattered endocrine cells differentiate throughout the organ, but these cells aggregate into so-called islets of Langerhans at the end of gestation (Slack, 1995).In recent years, major progress has been made in our understanding of the molecular pathways that control endocrine differentiation (Jensen, 2004). Much of this knowledge stems from genetic gain-and loss-of-function experiments in mice. Such studies have shown that Ngn3 activity is essential for the differentiation of all endocrine cells and, conversely, that Ngn3 is sufficient to restrict Pdx1-positive (Pdx1 + ) progenitors to an endocrine fate (Apelqvist et al., 1999;Gradwohl et al., 2000;Schwitzgebel et al., 2000). Based on the observation that only select endocrine lineages are affected in null mutant mice for Nkx2.2 (Nkx2-2), NeuroD (Neurod1), Pax4, Arx, Hb9 (also known as Hlxb9 -Mouse Genome Informatics) or Nkx6.1 (Nkx6-1), these transcription factors have been proposed to be downstream effectors of Ngn3 (Collombat et al., 2003;Harrison et al., 1999;Li et al., 1999;Naya et al., 1997;Sander et al., 2000b;Schwitzgebel, 2001;Sosa-Pineda et al., 1997;Sussel et al., 1998;Wilson et al., 2003). Although the loss of Pax4, Arx and NeuroD expression in Ngn3 mutant mice (Collombat et al., 2003;Gradwohl et al., 2000) indeed suggests a function of these genes downstream of Ngn3 in endocrine differentiation, the evidence for Nkx6.1 being downstream of Ngn3 is less clear.Deficiency for Nkx6.1 results in a specific abrogation of beta-cell neogenesis during embryogenesis without affecting cell survival or the development of any other cell type in the pancreas (Sander et al., 2000b). In Nkx6.1 mutant mice, a marked reduction in beta-cell numbers is first apparent at embryonic day (E)14, the time-point at which the first mature beta-cells differentiate. The specific defect in the beta-cell lineage and th...