Functions in hedgehog (Hh) signaling. Regulates the release and extracellular accumulation of cholesterol-modified hedgehog proteins and is hence required for effective production of the Hh signal. Synergizes with SCUBE2 to cause an increase in SHH secretion (PubMed:22902404). Interacts with SHH; via the cholesterol anchor of the dually lipid-modified SHH (ShhNp) (PubMed:22902404). Expression overlaps with the one of SHH and IHH being restricted to tissues that require Hh signaling. PubMed:12372301, reported a more ubiquitous expression which is detected throughout the embryo at 7.5 dpc and is maintained during embryonic development. Death at or soon after 9.5 dpc probably due to abnormal embryonic turning and looping of the heart. Embryos also display defects in development of the forebrain and branchial arches. Belongs to the dispatched family.