The cytoplasmic domain of the Fc gamma receptor IIB (Fc gamma RIIB) can be
successfully displayed on the surface of filamentous phage, and after phosp
horylation in vitro, can interact specifically with the SH2 domains of SHP-
2, a cytoplasmic tyrosine phosphatase. When full-length Fc gamma RIIB is ex
pressed on phage, however, this interaction is greatly compromised, illustr
ating that characteristics of the full-length sequence are not well tolerat
ed by the phage display system. Many associations in cell physiology are dr
iven by similar interactions involving small modular binding domains or lig
ands, and so a fragmented cDNA library will facilitate display of such doma
ins free of sequences which compromise their expression. A fragmented leuko
cyte cDNA display library of 10(8) clones was constructed. This library was
phosphorylated in vitro with fyn kinase and was selected against the tande
m SH2 domains of SHP-2 in the search for additional ligands. A depletion st
rategy to remove non-specific clones was employed, using SHP-2 Sepharose, p
rior to ill vitro phosphorylation and selection. This permitted the emergen
ce of clones encoding the cytoplasmic domain of PECAM-1, another natural li
gand for SHP-2. The importance of dual phosphorylation of tyrosine residues
at positions 663 and 686 was confirmed in competition ELISA experiments us
ing phosphorylated phage and synthetic peptides. Thus, phage display of fra
gmented cDNA libraries permits the identification and characterisation of p
hosphorylated ligands of modular binding domains based on their functional
interaction. (C) 2000 Academic Press.