Multipotent pancreatic progenitor cells (PDX1+/PTF1A+/SOX9+) are present in the ductal epithelium in the developing pancreas. In addition, multipotent CPA+/PTF1A+ cells at the tips in early development are multipotent progenitor cells but later in development are restricted to differentiating into only the exocrine lineage. All hormone-producing endocrine cell lineages are derived from the endocrine progenitor cells (NEUROG3+), which delaminate from the ductal epithelium. Endocrine progenitors can differentiate into all five hormone-expressing cell types including insulin-producing beta cells, glucagon-producing alpha cells, somatostatin-producing delta cells, pancreatic polypeptide-producing PP cells and ghrelin-producing epsilon cells. As development proceeds, these differentiated hormone+ cells will coalesce and form the islets of Langerhans. The influence of various transcription factors determines the specific endocrine cell produced.