Dr. Schally achieved international recognition as a 1977 Nobel Laureate for Medicine or Physiology. The prize was in recognition of his discovery of the structure of certain key hormones of the hypothalamus: thyrotropin-releasing hormones, luteinizing hormone-releasing hormones and follicle-stimulating hormones. His discoveries led to the recognition of the hypothalamus as the controlling factor of the pituitary gland.

Schally's work opened the door to new research in contraception, diabetes, abnormal growth, mental retardation, as well as depression and other human mental disorders.