A novel neurotrophic peptide of sequence Ala-Ala-Asp-Ile-Ser-Gln-Trp-Ala-Gly-Pro-Leu which exhibits biological activity enhancing acetylcholine synthesis in cholinergic neurons is isolated and purified from a water soluble fraction of hippocampal tissue in mammals. A derivative of the peptide having the same biological activity may be chemically synthesized using a conventional solid or liquid phase method. The peptide and derivative thereof are useful for the treatment of neurological degenerative disorders and dimentia.
