cThe cytochrome P450 enzyme CYP-sb21 from Sebekia benihana is capable of catalyzing the site-specific hydroxylation of the immunosuppressant cyclosporine (CsA), leading to the single product ␥-hydroxy-N-methyl-L-Leu4-CsA (CsA-4-OH). Unlike authentic CsA, this hydroxylated CsA shows significantly reduced immunosuppressive activity while it retains a side effect of CsA, the hair growth stimulation effect. Although CYP-sb21 was previously identified to be responsible for CsA-specific hydroxylation in vivo, the in vitro activity of CYP-sb21 has yet to be established for a deeper understanding of this P450 enzyme and further reaction optimization. In this study, we reconstituted the in vitro activity of CYP-sb21 by using surrogate redox partner proteins of bacterial and cyanobacterial origins. The highest CsA site-specific hydroxylation activity by CYP-sb21 was observed when it was partnered with the cyanobacterial redox system composed of seFdx and seFdR from Synechococcus elongatus PCC 7942. The best bioconversion yields were obtained in the presence of 10% methanol as a cosolvent and an NADPH regeneration system. A heterologous whole-cell biocatalyst using Escherichia coli was also constructed, and the permeability problem was solved by using N-cetyl-N,N,N-trimethylammonium bromide (CTAB). This work provides a useful example for reconstituting a hybrid P450 system and developing it into a promising biocatalyst for industrial application. C yclosporine (CsA) (Fig. 1), a lipophilic cyclopeptide consisting of 11 amino acids, was first isolated from the soil fungus Tolypocladium inflatum (1). It is a well-known immunosuppressant drug that has been widely used in organ transplantation to prevent allograft rejection and in the treatment of autoimmune diseases (2, 3). Despite its immunosuppressant activity, CsA provokes several side effects, such as nephrotoxicity, hypertension, and hirsutism (4, 5). Among these side effects, the strong hairgrowth-stimulating activity of CsA has attracted significant attention from both the academic community and the cosmetics industry due to its great potential to treat alopecia (6, 7). Mechanistically, it was revealed that CsA stimulates the growth of both murine hair epithelial cells and epidermal keratinocytes at an optimum concentration through inhibiting the expression and translocation of some protein kinase C isozymes that act as negative hair-growing factors (8).Unfortunately, CsA was not practical for use as a hair-restoring agent due to its strong immunosuppressive activity. To decouple these two activities, a wide spectrum of CsA derivatives with alternative amino acid substitutions was prepared and evaluated (9), among which the derivative ␥-hydroxy-N-methyl-L-Leu4-CsA (CsA-4-OH) (Fig. 1) was found to have lost immunosuppressive activity while retaining the considerable hair-growth-promoting effect (10). Regarding preparation, the highly regioselective hydroxylation of CsA by a chemical catalyst is extremely challenging. Thus, thousands of actinomycete strains were screened ...