We have applied the soluble pyridine nucleotide transhydrogenase of Pseudomonas fluorescens to a cell-free system for the regeneration of the nicotinamide cofactors NAD and NADP in the biological production of the important semisynthetic opiate drug hydromorphone. The original recombinant whole-cell system suffered from cofactor depletion resulting from the action of an NADP ؉ -dependent morphine dehydrogenase and an NADHdependent morphinone reductase. By applying a soluble pyridine nucleotide transhydrogenase, which can transfer reducing equivalents between NAD and NADP, we demonstrate with a cell-free system that efficient cofactor cycling in the presence of catalytic amounts of cofactors occurs, resulting in high yields of hydromorphone. The ratio of morphine dehydrogenase, morphinone reductase, and soluble pyridine nucleotide transhydrogenase is critical for diminishing the production of the unwanted by-product dihydromorphine and for optimum hydromorphone yields. Application of the soluble pyridine nucleotide transhydrogenase to the whole-cell system resulted in an improved biocatalyst with an extended lifetime. These results demonstrate the usefulness of the soluble pyridine nucleotide transhydrogenase and its wider application as a tool in metabolic engineering and biocatalysis.The pyridine nucleotide cofactors NAD and NADP are essential components of the cell, where they act as electron carriers in reduction and oxidation reactions. A large percentage of enzymes are dependent on these coenzymes for their activities (SwissProt database, http://www.expasy.ch/sprot/), and the cofactors are known to be involved in a vast amount of reactions (EcoCyc database). Many of the NAD(P)-dependent oxidoreductases catalyze reactions of commercial interest and have many applications, for instance, in the production of chiral compounds, amino acids, steroids, and other therapeutics for the pharmaceutical industry, in the modification or synthesis of polymers, in the oxidative remediation of pollutants, in the oxyfunctionalization of hydrocarbons, and in the construction of biosensors (14,18). The high cost of the pyridine nucleotide cofactors which need to be provided in stoichiometric quantities in enzyme reactions is an important commercial issue. Cofactor regeneration is, therefore, an important consideration when processes involving NAD(P)-dependent oxidoreductases are to be applied in a commercial setting.In cell-free systems the cofactors must be supplied, albeit at a lower-than-stoichiometric concentration (catalytic amounts), when cofactor regeneration is achieved. Alternatively, processes dependent on these cofactors can be carried out in whole cells which are known to have some reserves of the cofactor, but also here cofactor depletion can be a problem. Mostly NAD is regenerated using formate dehydrogenase, while NADP is recycled using glucose dehydrogenase. Recently, Galkin et al. described the synthesis of optically active amino acids from 2-keto acids using recombinant Escherichia coli coexpressing an amino ...