hh is synthesized as a precursor peptide that is subsequently cleaved and lipidated to produced the mature, functional ligand. hh is modified by the enzymatic addition of a palmityl residue at the N terminus. In a separate processing step, hh self-cleaves via an intein-like activity to remove the C-terminal domain. As part of this reaction, a cholesteryl residue is added to the C-terminus of the N-terminal domain. The active form of hh is lipophilic and requires addtional players for secretion/release from hh-producing cells. (Adapted from FBrf0230446 and PMID:22114141).