The crystal structures of a cysteine-215 --> serine mutant of protein
tyrosine phosphatase 1B complexed with high-affinity peptide substrate
s corresponding to an autophosphorylation site of the epidermal growth
factor receptor were determined. Peptide binding to the protein phosp
hatase was accompanied by a conformational change of a surface loop th
at created a phosphotyrosine recognition pocket and induced a catalyti
cally competent form of the enzyme. The phosphotyrosine side chain is
buried within the protein and anchors the peptide substrate to its bin
ding site. Hydrogen bonds between peptide main-chain atoms and the pro
tein contribute to binding affinity, and specific interactions of acid
ic residues of the peptide with basic residues on the surface of the e
nzyme confer sequence specificity.