We generated mice that carry copies of a dormant transgene encoding th
e SV40 tumor antigens. The transgenes are specifically targeted to the
lens and contain features that render their expression dependent on t
he action of Cre, a site-specific bacteriophage DNA recombinase. Timin
g of oncogene activation was controlled by making Cre available either
prior to, or coincident with, the onset of primary fiber differentiat
ion in the embryonic lens vesicle. Early expression of Cre resulted in
oncogene activation in undifferentiated lens epithelial cells that ra
pidly proliferated inside the lens capsule. By contrast, when Cre accu
mulation was delayed to coincide with the onset of primary lens fiber
differentiation, SV40 oncogenes were activated in cells that had begun
to elongate and to accumulate lens-specific crystallins. During subse
quent proliferation inside the lens capsule, transformed progeny cells
maintained the profile of fiber differentiation that their parent cel
ls had acquired at the time of oncogenic conversion. Developing lens t
umors were confined within the capsule of the embryonic lens. However,
if the capsule was perforated in an embryonic eye in organ culture, c
ells rapidly grew out while still maintaining features of differentiat
ion. Our findings show that the differentiated state of the primary ta
rget cells is an important parameter of subsequent lens oncogenesis, a
nd that an intact lens capsule can restrict invasive neoplastic growth
.