An open reading frame (rapP) encoding the putative pipecolate-incorporating enzyme (PIE) has been identified in the gene cluster for the biosynthesis of rapamycin in Streptomyces hygroscopicus. Conserved amino acid sequence motifs for ATP binding, ATP hydrolysis, adenylate formation, and 4'-phosphopantetheine attachment were identified by sequence comparison with authentic peptide synthetases. Disruption of rupP by phage insertion abolished rapamycin production in S. hygroscopicus, and the production of the antibiotic was specifically restored upon loss of the inserted phage by a second recombination event. rupP was expressed in both Escherichia coli and Streptomyces coelicolor, and recombinant PIE was purified to homogeneity from both hosts. Although low-level incorporation of [ I4C]B-alanine into recombinant PIE isolated from E. coli was detected, formation of the covalent acylenzyme intermediate could only be shown with the PIE from S. coelicolor, suggesting that while the recombinant PIE from S. coelicolor was phosphopantetheinylated, only a minor proportion of the recombinant enzyme from E. coli was post-translationally modified.Keywords: rapamycin ; pipecolate-incorporating enzyme; Streptomyces hygroscopicus ; non-ribosomal peptide synthetase; polyketide biosynthesis.Rapamycin is a polyketide macrolide produced by Streptonzyces hygroscopicus, which first attracted attention because of its anti-fungal activity [I]. Recently it was discovered to be a powerful immunosuppressant, like the structurally related FKS06 and immunomycin produced by Streptomyces tsukuhaensis and S. hygroscopicus var. ascomyceticus, respectively (Fig. 1). All three molecules inhibit T-cell activation at concentrations 10-100 times lower than that required by cyclosporin A, the agent currently favoured for the prevention of graft rejection following transplantation 121.The polyketide backbone of rapamycin is synthesised by head-to-tail condensation of a total of seven propionate and seven acetate units to a shikimate-derived cyclohexane carboxylic starter unit. The 14 chain-extension cycles are carried out by type-I polyketide synthase (PKS) multienzymes, in a process clearly analogous to erythromycin biosynthesis [3, 41. The imino acid pipecolate is condensed in an amide linkage onto the last acetate of the polyketide backbone. Cheng et al. reported on a 150 % increase in the production of rapamycin by S. hygroscopicus i n a chemically defined medium upon the addition of is directly incorporated into rapamycin [6]. The pipecolate-incorporating enzyme (PIE) is thought to act by a mechanism analogous to that proposed for non-ribosomal peptide synthetases (reviewed in 7-9). In non-ribosomal peptide biosynthesis, amino acids are first activated through the formation of an aminoacyl adenylate, and covalently linked through a thioester bond to a phosphopanthetheine prosthetic group attached to an acyl-carrier-protein(ACP)-like domain of the synthetase before condensation takes place [lo]. The first evidence that pipecolate incorporation int...