Nucleoside analogs are important in the treatment of hematologic malignancies, solid tumors, and viral infections. Their metabolism to the triphosphate form is central to their chemotherapeutic efficacy. Although the nucleoside kinases responsible for the phosphorylation of these compounds have been well described, the nucleotidases that may mediate drug resistance through dephosphorylation remain obscure. We have cloned and characterized a novel human cytosolic 5-nucleotidase ( Nucleoside analogs are used as chemotherapeutic agents in the treatment of hematologic malignancies and as anti-viral drugs. These compounds are taken up by cells through nucleoside transporters in the cell membrane or, in the case of more lipophilic drugs, through diffusion (1-3). Once in the cytoplasm, the nucleoside analogs are substrates for phosphorylation by the nucleoside kinases of the deoxyribonucleoside salvage pathway (reviewed in Ref. 4). The enzyme 2Ј-deoxycytidine kinase phosphorylates dAdo, dCyd, and dGuo as well as the analogs AraC, 1 dFdC, and CdA, whereas thymidine kinase 1 phosphorylates dThd and dUrd as well as the analogs d4T and 5-FU. Phosphorylation to the monophosphate form is considered the rate-limiting step of activation of nucleoside analogs (4). Nucleoside analog monophosphates are rapidly phosphorylated to their triphosphate forms, which are believed to mediate their cytotoxic activities by several different mechanisms (reviewed in Ref. 5). For example, they can be directly incorporated into DNA, leading to chain termination, or they can inhibit DNA synthesis by direct inhibition of DNA polymerase. It has recently been demonstrated that certain of these metabolites, including CdATP, AraATP, and F-AraATP, can induce apoptosis in nonproliferating cells by interacting with cytochrome c and apoptosis protein-activating factor-1 (APAF-1) to cleave and activate the caspases responsible for the induction of apoptosis (6, 7). In contrast, the triphosphates of antiretroviral compounds, such as 2Ј,3Ј-dideoxycytidine (ddC) and d4T, inhibit the reverse transcriptase of the human immunodeficiency virus through chain termination. Cytotoxicity can occur when these compounds are incorporated into nuclear or mitochondrial DNA (reviewed in Ref. 8).Resistance to nucleoside analogs is a significant clinical problem and can be caused by a number of factors affecting the metabolism of the drugs, including decreased numbers of nucleoside transporters, increased deamination of cytidine and adenosine analogs, loss of expression of activating kinases, modulation of the downstream apoptotic machinery, and increased activity of nucleotidases that catalyze the conversion of nucleotides back to nucleosides (reviewed in Ref. 5). The 5Ј-nucleotidases oppose the action of nucleoside kinases by dephosphorylating the monophosphate form of nucleosides and nucleoside analogs and, therefore, are likely to be important in determining the sizes and turnover rates of the deoxyribonucleotide pools. Thus, 5Ј-nucleotidases that catabolize the monophos...