Journal of Cellular Biochemistry 87:363–376 (2002) ARTICLES Transcriptional Activation of the Tyrosine Phosphatase Gene, OST-PTP, During Osteoblast Differentiation Marie A. Wheeler, 1 Melanie K. Townsend, 1 Laurie A. Yunker, 1,2 and Laura J. Mauro 1,2 * 1 Department of Animal Science-Physiology, University of Minnesota, St. Paul, Minnesota 55108 2 Graduate Program in Molecular Veterinary Biosciences, University of Minnesota, St. Paul, Minnesota 55108 Abstract Protein tyrosine phosphatases (PTPs) are critical regulators of cellular phosphorylation functioning in processes such as cell growth, differentiation, and adhesion. Osteotesticular PTP (OST) is the only characterized member of this superfamily whose expression is regulated in osteoblasts and critical for their in vitro differentiation. Such evidence would suggest that this molecule is a key modulator of signaling events during osteogenesis, yet little is known about its genetic regulation. In an effort to examine the molecular mechanisms involved in the cellular regulation of OST, we have characterized its expression in MC3T3 osteoblasts during differentiation. Northern analysis revealed that murine OST mRNA is dramatically regulated during the preosteoblast to osteoblast progression, with predominant expression in differentiated and early mineralizing osteoblasts. This expression pattern is unique to this phosphatase since, in comparison, the structurally similar receptor PTP, LAR, and the intracellular PTP1B show little change during differ- entiation. Cell density contributes to this upregulated expression as confluent cultures display an increase in OST transcripts within 4 h post-plating. Transient transfection of the OST promoter in differentiating MC3T3 results in a significant increase in transcriptional activation from day 0 to day 5 of differentiation, similar in timing and intensity to the observed upregulation of the endogenous gene. This activation appears to be specific to osteoblasts, since progression to a myoblast phenotype results in no change in reporter gene activity. Culturing these preosteoblast cells in the absence of critical co-factors results in an inhibition of differentiation and leads to a delayed induction of OST transcripts as well as the attenuation of transcriptional activation. These results show that the murine OST gene is regulated at the transcriptional level in an osteoblast-specific, differentiation-dependent manner during the differentiation of MC3T3 osteoblasts. Future studies will help determine the essential regulatory elements within the OST-PTP promoter and the critical signaling pathways important in this regulation. J. Cell. Biochem. 87: 363 – 376, 2002. ß 2002 Wiley-Liss, Inc. Key words: tyrosine phosphatase; gene expression; osteoblast; differentiation; osteogenesis Protein tyrosine phosphatases (PTPs) are enzymes which modulate signaling pathways by removing (i.e., hydrolyzing) a phosphoryl group from the tyrosine residues of specific cellular proteins [Zhang, 2002]. In concert with protein tyrosine kinases (PTKs), these mole- cules mediate phosphorylation and maintain a level of phosphotyrosine proteins that influ- ences the functional state of the cell. PTPs can act as biochemical ‘‘on’’ or ‘‘off ’’ switches, regul- ating such processes as passage through the cell cycle, proliferation, differentiation, and cell-to- cell interactions [Hunter, 1998; Hunter, 2000]. Novel drugs have been designed for specific PTPs to ameliorate symptoms of diabetes melli- tus [Wagman and Nuss, 2001; Cheng et al., 2002] or inhibit oncogenesis [Pestell et al., 2000], attesting to the critical role of this enzyme superfamily in cell function. The molecule known as osteotesticular PTP, OST-PTP, is a unique member of this super- family which may function as an essential regulator of phosphotyrosine-dependent signal- ing during osteogenesis. Originally isolated from primary rat calvariae and osteosarcoma ß 2002 Wiley-Liss, Inc. Part of this work was presented as an Abstract at the 2001 American Society for Bone and Mineral Research meeting, Phoenix, AZ [Mauro et al., 2001]. Grant sponsor: National Institutes of Health; Grant numbers: R55, R29 (AR-44226); Grant sponsor: Minnesota Medical Foundation; Grant sponsor: American Federation for Aging Research. *Correspondence to: Laura J. Mauro, University of Minnesota, 495 Animal Science/Veterinary Medicine Bldg., 1988 Fitch Ave., St. Paul, MN 55108. E-mail: mauro002@umn.edu Received 22 July 2002; Accepted 24 July 2002 DOI 10.1002/jcb.10297