We previously reported that the secretory capacity of Pichia pastoris is limited with respect to the secretion of a 96.5-kDa bivalent anti-CD3 immunotoxin; double-copy expression generated more translation products than single-copy expression but did not increase the secretion of the immunotoxin. In Saccharomyces cerevisiae heterologous protein secretion has been reported to increase the expression of molecular chaperones, most prominently BiP/Kar2p. We therefore investigated the relationships between immunotoxin secretion and Kar2p expression in P. pastoris. We found that expression of the immunotoxin in P. pastoris increased the expression of Kar2p to levels that surpassed the retrieval capacity of the cell, leading to secretion of Kar2p into the medium. The level of Kar2p secretion was correlated with the copy number of the immunotoxin gene. Intracellular Kar2p was found to bind exclusively to the unprocessed immunotoxin containing the prosequence of ␣-factor in the endoplasmic reticulum. These results show that Kar2p is intimately involved in immunotoxin secretion in P. pastoris. The limited capacity of P. pastoris to retain a sufficiently high level of intracellular Kar2p may be a factor restricting the production of the immunotoxin.The yeast Pichia pastoris has been developed into a highly successful system for the production of recombinant proteins having different origins (5). However, the efficiency of heterologous secretion can vary widely among the expressed proteins. Some eukaryotic proteins, such as human serum albumin and insulin, can be secreted at very high levels (grams per liter), whereas the secretion levels of many other proteins are significantly lower or even undetectable.We have expressed a bivalent anti-CD3 immunotoxin in P. pastoris with a moderate secretion level (about 5 mg/liter in shake flask cultures and 37 mg/liter in fermentation cultures) (46,47). Attempts to increase the production of this protein by using protease inhibitors and protease-deficient strains and by increasing the copy number of the gene were not successful (21). Interestingly, strains with two copies of the immunotoxin gene generated more translation product, but there was not an increase in the secretion of the intact protein, indicating that the expressing host has a limited capacity to fold and/or secret the immunotoxin. Structurally, this multidomain immunotoxin has several interesting features (Fig. 1). The N terminus consists of the diphtheria toxin (DT) catalytic domain (DT A), followed by the toxin translocation domain ending at DT residue 390, followed by two tandem scFv domains separated by a (G 4 S)3 linker (40). The junction between the catalytic and translocation domains contains an accessible Kex2 cleavage site spanned by a disulfide loop. To facilitate secretion, the toxin gene is preceded by the Saccharomyces cerevisiae ␣-mating factor preprosequence. Based on our understanding of the processing and secretion of ␣-factor in S. cerevisiae (37), we expect that after entering the endoplasmic reticulum...