During the past year, Dr. Moos has published a description of a novel growth factor, Anti-Dorsalizing Morphogenetic Protein (ADMP) that exerts profound control over the formation of the body axis in development in vertebrates. This protein may provide important regulatory control over nervous system development. The major claims contained in a patent application relating to three other genes (the Cartilage-Derived Morphogenetic Proteins) have been allowed, and seven major biotechnology firms have applied to license them. Two of these proteins are specific to articular cartilage, and during the past year have proven to exert chondrogenic and osteogenic activities. As such, they are leading candidates for clinical applications in bone and joint repair, and for manipulation of autologous cells.Initial studies describing the role of Osteogenic Protein-1 in early vertebrate development were completed and submitted for publication. The salient findings were that this growth factor is a powerful inducer of ventral derivatives; the most striking such effect is a dramatic induction of blood tissue. Another gene, Frzb, originally isolated from mammalian articular cartilage in collaboration with Frank Luyten of NIDR has proven to be a secreted growth factor. Recent experiments in the laboratory have demonstrated that the protein can induce formation of muscle and nerve tissue, and also participates in formation of the body axis in vertebrate organisms. Further, it appears to function as a soluble inhibitor to Wnt growth factors in functional assays. A patent filing on this factor is anticipated shortly.Finally, an improved method for purification of the signal transducing enzyme adenylyl cyclase was published.