We have previously described the expression of the human proprotein convertase furin or paired basic amino acid-cleaving enzyme, in mice transgenic for paired basic amino acid-cleaving enzyme and human Protein C (HPC). Here we show 100-fold or higher expression of furin in the mammary gland, compared with endogenous furin. Furin and recombinant HPC were detected in the same regions of the mammary gland and regulated similar to the endogenous whey acidic protein. In addition to the expected intracellular localization, furin was secreted into the milk as an 80-kDa form lacking the transmembrane and cytoplasmic domains. Furin present at levels of up to 40,000 units/ml milk cleaved the t-butoxycarbonyl-RVRR-AMC substrate with a K m of 32 M, and processed the recombinant HPC precursor at the appropriate sites. Surprisingly, the expression of an active protease was not toxic to the mammary gland. This is a rare example of an animal model secreting active truncated forms of a processing endoprotease into a bodily fluid.Furin or paired basic amino acid cleaving enzyme (PACE) 1 is a Ca 2ϩ -dependent serine protease that processes proteins in the constitutive secretory pathway (1). Furin belongs to a family of subtilisin-like proprotein convertases including kexin (EC 3.4.21.61), PC1/3, PC2, PC4, PC5/6, PACE4 (reviewed in Ref. 1), and PC7/PC8 or lymphoma proprotein convertase (2-5), that play a role in the maturation of proproteins by cleavage at dibasic or tetrabasic sites (6). Unlike PC1/3, PC2, and PC4, which are restricted to endocrine, neural, or testicular germ cells and ovaries, respectively, the furin gene is expressed in most cells and tissues examined (1, 7).cDNAs cloned from several species show furin to contain prepro-, catalytic and middle domains, a cysteine-rich region, transmembrane anchor, and cytoplasmic domain (1). Furin is activated by autocatalytic cleavage of its propeptide, presumably at the -Lys-Arg-Arg-Thr-Lys-Arg Ϫ1 -2 site (1,8). A membrane-associated protein, it is found mainly in the trans-Golgi network (TGN) co-localized with the TGN 38 marker protein (9). Some amount of furin recycles between the cell surface and the TGN (9) in endosome-like structures (10). So far furin has not been detected in bodily fluids like blood, nor has the effect of its expression on cell and organ development been studied in transgenic animals.Transgenic animals secreting recombinant proteins into milk, blood, urine, or saliva (11) have been generated and differences in recombinant protein modification compared with the human counterpart observed (12). In a pioneering attempt to engineer the post-translational capacity of the mouse mammary gland, we reported enhanced proteolytic maturation of the recombinant human Protein C (rHPC) precursor upon coexpression with furin (13). However, the effect of increased furin concentration on mammary gland development could not be predicted, nor its' intra-and extracellular distribution. Here we demonstrate localization of two heterologous proteins with the endogenous whey ac...