This transgene contains the surfactant associated protein C (Sftpc) promoter followed by a loxP-flanked neomycin resistance cassette with a strong translation termination (STOP) signal and the gremlin 1, DAN family BMP antagonist (Grem1) coding sequence. Deletion of the floxed sequence by Cre recombinase in transgenic mice results in Grem1 expression in lung type II epithelial cells.