Abstract: The present invention makes available a rapid, effective assay for screening and identifying pharmaceutically effective compounds that specifically interact with and modulate the activity of a cellular protein, e.g., a receptor or ion channel. The subject assay enables rapid screening of large numbers of compounds to identify those which act as an agonist or antagonist to the bioactivity of the cellular protein. The subject assay is particularly amenable for identifying surrogate ligands for receptors especially from small molecule or peptide libraries or from peptides produced by an autocrine system.