Chromosomal translocations that encode fusion oncoproteins have been observ
ed consistently in leukemias/lymphomas and sarcomas but not in carcinomas,
the most common human cancers. Here, we report that t(2;3)(q13;p25), a tran
slocation identified in a subset of human thyroid follicular carcinomas, re
sults in fusion of the DNA binding domains of the thyroid transcription fac
tor PAX8 to domains A to F of the peroxisome proliferator-activated recepto
r (PPAR) gamma 1. PAX8-PPAR gamma 1 mRNA and protein were detected in 5 of
8 thyroid follicular carcinomas but not in 20 follicular adenomas, 10 papil
lary carcinomas, or 10 multinodular hyperplasias. PAX8-PPAR gamma 1 inhibit
ed thiazolidinedione-induced transactivation by PPAR gamma 1 in a dominant
negative manner. The experiments demonstrate an oncogenic role for PPAR gam
ma and suggest that PAX8-PPAR gamma 1 may be useful in the diagnosis and tr
eatment of thyroid carcinoma.