Cathepsin D (EC 3.4.23.5) is a lysosomal protease suspected to play important roles in protein catabolism, antigen processing, degenerative diseases, and breast cancer progresson. Determination of the crystal structures of cathepsin D and a complex with pepstatin at 2.5 A resolution provides insights into inhibitor binding and lysosomal targeting for this two-chain, N-glycosylated aspartic protease. Comparison with the structures of a complex of pepstatin bound to rhizopuspepsin and with a human renin-bihbitor complex revealed differences in subsite structures and inhibitor-enzyme interactions that are consistent with affnity differences and structure-activity relationships and suggest strategies for fmetuning the specificity of cathepsin D inhibitors. Mutagenesis studies have identified a phosphotransferase recognition region that is required for oligosaccharide phosphorylation but is 32 A distant from the N-domain glycosylation site at Asn-70. Electron density for the crystal structure of cathepsin D indicated the presence of an N-linked oligosaccharide that extends from Asn-70 toward Lys-203, which is a key component of the phosphotransferase recognition region, and thus provides a structural explanation for how the phosphotransferase can recognize apparently distnt sites on the protein surface.Cathepsin D (EC 3.4.23.5) is an aspartic protease that is normally found in the lysosomes of higher eukaryotes where it functions in protein catabolism (1). This enzyme is distinguished from other members of the pepsin family (2) by two features that are characteristic of lysosomal hydrolases. First, mature cathepsin D is found predominantly in a twochain form due to a posttranslational cleavage event (1, 3). Second, it contains phosphorylated, N-linked oligosaccharides that target the enzyme to lysosomes via mannose 6-phosphate (M6P) receptors (4, 5). Phosphorylation involves recognition of both sugar and protein structural determinants by a phosphotransferase enzyme (6, 7).Interest in cathepsin D as a target for drug design results from its association with several biological processes of therapeutic significance including lysosomal biogenesis and protein targeting (4,5), antigen processing and the presentation of peptide fragments to class II major histocompatibility complexes (8-10), connective tissue disease pathology (11), muscular dystrophy (12), degenerative brain changes (13,14), and cleavage of amyloid precursor protein within senile plaques of Alzheimer brain (15). Recent duced in the vicinity of the growing tumor, may degrade the extracellular matrix and thereby promote the escape of cancer cells to the lymphatic and circulatory systems and enhance the invasion of new tissues (17,18). The design of potent and specific inhibitors of cathepsin D will aid the further elucidation of the roles of this enzyme in human disease. We previously described the purification and crystallization ofhuman cathepsin D from liver (3); similar studies have been reported recently for cathepsin D isolated from bovine l...