Bone morphogenetic protein-1 (BMP-1) is a metalloprotease that plays import
ant roles in regulating the deposition of fibrous extracellular matrix in v
ertebrates, including provision of the procollagen C-proteinase activity th
at processes the major fibrillar collagens I-III. Biglycan, a small leucine
-rich proteoglycan, is a nonfibrillar extracellular matrix component with f
unctions that include the positive regulation of bone formation. Biglycan i
s synthesized as a precursor with an NH2-terminal propeptide that is cleave
d to yield the mature form found in vertebrate tissues. Here, we show that
BMP-1 cleaves probiglycan at a single site, removing the propeptide and pro
ducing a biglycan molecule with an NH2 terminus identical to that of the ma
ture form found in tissues. BMP-1-related proteases mammalian Tolloid and m
ammalian Tolloid-like 1 (mTLL-1) are shown to have low but detectable level
s of probiglycan-cleaving activity. Comparison shows that wild type mouse e
mbryo fibroblasts (MEFs) produce only fully processed biglycan, whereas MEF
s derived from embryos homozygous null for the Bmp1 gene, which encodes bot
h BMP-1 and mammalian Tolloid, produce predominantly unprocessed probiglyca
n, and MEFs homozygous null for both the Bmp1 gene and the mTLL-1 gene Tll1
produce only unprocessed probiglycan. Thus, all detectable probiglycan-pro
cessing activity in MEFs is accounted for by the products of these two gene
s.