Transcription elongation by RNA polymerase II (RNAPII) is negatively regula
ted by the human factors DRB-sensitivity inducing factor (DSIF) and negativ
e elongation factor (NELF). A 66-kilodalton subunit of NELF (NELF-A) shows
limited sequence similarity to hepatitis delta antigen (HDAg), the viral pr
otein required for replication of hepatitis delta virus (HDV). The host RNA
PII has been implicated in HDV replication, but the detailed mechanism and
the role of HDAg in this process are not understood. We show that HDAg bind
s RNAPII directly and stimulates transcription by displacing NELF and promo
ting RNAPII elongation. These results suggest that HDAg may regulate RNAPII
elongation during both cellular messenger RNA synthesis and HDV RNA replic
ation.