Thalidomide binds to cereblon
1. Causes a confirmation change (its an allosteric modulator)
2. Change in the cereblon cause E3 ubiquitin complex to recognise a new set of substrate proteins (would be different if thalidomide was absent) including SALL4(TF) that becomes ubiquitinated and degradation by proteasome
3. Degradation causes change in signal transduction