The present invention relates to differentiation of stem cells into a homogeneous endocrine
progenitor cell population suitable for further differentiation into pancreatic beta-cells. The
present invention provides methods for obtaining NGN3/NKX2. 2 double positive endocrine
progenitor cells by exposing precursor cells to a TGF-B type I receptor inhibitor, a BMP
antagonist, an adenylate cyclase activator and nicotinamide and/or exposing to the
precursor cells to a selection of small molecules.