A new insertion allele of the hdc gene was isolated and described. The nucleotide sequence of the coding region had no detectable homology with genomic DNA of any other Drosophila species, except for D. mauritiana. Gene expression was found both in adult testes and ovaries and at embryonic and larval stages. This expression pattern exhibits a strong similarity to that of cell-cycle genes. In contrast to cycE (a typical cell-cycle gene), which leads to expression termination after in vivo culturing of the wing disk, hdc did not arrest expression. It is concluded that hdc is a species-specific differentiation gene, whose regulatory activity in the development of an organism differs from that of proliferation genes.