The current therapy for hepatitis B and C is based on systemic administration of recombinant human alpha interferon (r-hIFN-␣). However, systemic delivery of r-hIFN-␣ is associated with severe side effects, but more importantly, it is effective in only a small percentage of patients. In an effort to maximize IFN-␣ antiviral efficacy, we have explored the therapeutic potential of murine IFN-␣2 (mIFN␣2) selectively expressed in the liver. To this end, we have developed a helper-dependent adenovirus vector (HD) containing the mIFN-␣2 gene under the control of the liver-specific transthyretin promoter (HD-IFN). Comparison with a first-generation adenovirus carrying the same mIFN-␣2 expression cassette indicates that at certain HD-IFN doses, induction of antiviral genes can be achieved in the absence of detectable circulating mIFN-␣2. Challenge of injected mice with mouse hepatitis virus type 3 showed that HD-IFN provides high liver protection. Moreover, liver protection was also observed in acute nonviral liver inflammation hepatitis induced by concanavalin A at 1 month postinfection. These results hold promise for the development of a gene therapy treatment for chronic viral hepatitis based on liver-restricted expression of IFN-␣2.Interferon (IFN) was discovered by Isaac and Lindenmann in 1957 (18), and recently the U.S. Food and Drug Administration has approved recombinant human IFN-␣ (r-hIFN-␣) for the treatment of hepatitis B virus (HBV) and hepatitis C virus (HCV) infections. IFN-␣ acts on target cells to confer a state of resistance to viral infectivity at one or more stages of virus entry or replication. These biological effects require binding to the type I IFN receptor complex, which is composed of two subunits, ␣ and  (12). Both subunits undergo rapid ligand-dependent tyrosine phosphorylation, and the ␣ subunit itself acts as a species-specific transducer for type I IFN action (7). At least 30 genes are known to be transcriptionally induced by type I IFNs, including 2Ј,5Ј-oligoadenylate synthetase (2Ј5ЈOAS), the double-stranded RNA-activated protein kinase, and the IFN-I response factor I (8, 10). 2Ј5ЈOAS is important for antiviral response, and its activity is required by cells to activate the endonuclease RNase L, which degrades RNA (31).The currently available treatment for HCV with r-hIFN-␣ results in clearance of the virus in only 20% of patients. However, recent clinical trials have shown that a combination of r-hIFN-␣ and the antiviral drug ribavirin can increase the percentage of recovery up to 40% (9, 30). Although these results appear to be very promising, systemic injection of r-hIFN-␣ is associated with severe side effects, which worsen in combination with ribavirin, causing the withdrawal of 20% of patients from therapy.It is not clear why r-hIFN-␣ treatment is effective in only a minority of patients. One possible explanation has been postulated on the basis of association of specific HCV genotype and lack of sustained response. HCV proteins may block IFN-␣-induced antiviral polypeptides, t...