The mechanisms of hepatic carcinogenesis remain a major focus of resea
rch. Progress has been made in the identification of genetic changes o
ccurring in premalignant liver, with evidence that dysplastic liver is
neoplastic. Significantly, oncogenic changes are also present in cirr
hotic liver. With respect to metabolic pathways relevant to hepatocell
ular carcinoma, there is increasing emphasis on the balance between th
e proliferative effects of insulinlike growth factors and the antineop
lastic effects of transforming growth factor-beta. These and other stu
dies are elucidating the histologic, genetic, and related metabolic st
eps that are relevant to malignant transformation. Clinically, dysplas
ia present on liver biopsy has been used to identify patients at incre
ased risk of developing hepatocellular carcinoma. This predictive test
ing has implications for the treatment of patients with compensated ci
rrhosis. Additionally, there is tantalizing and controversial evidence
that treatment of hepatitis C-related cirrhosis with interferon may r
educe the risk of hepatocellular carcinoma.