NeuroD is a basic helix-loop-helix (bHLH) transcription factor cloned from a two hybrid screen designed to search for new bHLH proteins. In our previous studies, we showed that NeuroD could convert Xenopus ectoderm into fully differentiated neurons and that it could prematurely differentiate neural precursor cells in the nervous system. Recently, an insulin transcription activator, Beta-2, was cloned from a hamster insulinoma cell line by Naya et al. [Genes Dev (1995)9:1,009-1,019]. Sequence analysis revealed that Beta-2 is the hamster homologue of NeuroD. We are currently investigating the role that NeuroD/Beta-2 plays in vertebrate neurogenesis and pancreatic development.