The growth of mammalian cells is under the stringent control of both g
rowth stimulatory and inhibitory signals. While a series of growth sti
mulatory compounds, their receptors and the intracellular signals gene
rated by their interaction have been studied in detail, little is know
n about growth inhibitory compounds. A major growth negative regulatio
n, especially in vitro, is exerted by specific cell-cell contacts, kno
wn as contact dependent inhibition of growth. Here, a recently isolate
d plasma membrane glycoprotein referred to as contactinhibin induces g
eneration of intracellular growth inhibiting signals by binding to a s
pecific receptor. The binding activity of the receptor is inversely re
gulated by its degree of phosphorylation. In transformed cells, the re
ceptor is overphosphorylated thereby impairing its contactinhibin bind
ing activity, resulting in loss of growth inhibition. Overphosphorylat
ion may result from activation of oncogene encoded protein kinases, su
ggesting that contactinhibin-receptor may be a crucial and central sub
strate for growth-dysregulating processes in transformed cells.