In two recently reported cases, integrated hepatitis B virus (HBV) DNA
s cloned from hepatocellular carcinoma were found to express a transcr
iptional transactivator from 3'-terminally truncated HBV surface (preS
/S) genes. In this study, we characterized the transactivator at the p
rotein level. Expression of a 3'-truncated preS2/S gene in Spodoptera
frugiperda (Sf9) insect cells resulted in a C-terminally truncated mid
dle surface protein of 76 amino acids (MHBs(t76)), which was found to
be associated with membranes of the endoplasmic reticulum and retained
from Golgi processing and secretion, Accordingly, the microsome fract
ion of MHBs(t76)-expressing Sf9 cells displayed transactivator activit
y after electric field-mediated transfer into Chang liver cells. In co
ntrast to full-length MHBs, MHBs(t76) is unglycosylated, and glycosyla
tion is not required for transactivation as shown by mutation of the g
lycosylation site at asparagine-4. Since highly purified MHBs(t76) der
ived from an E. coli expression system also showed transactivator acti
vity, it is concluded that unglycosylated MHBs(t76) protein is the aut
hentic transactivating factor. As the transactivator protein derives f
rom inactive MHbs by rearrangements of integrated HBV DNA, it may be i
mportant for HBV-associated liver carcinogenesis.