Like other members of the epidermal growth factor family, heparin-binding epidermal growth factor-like growth factor (HB-EGF) is synthesized as a transmembrane protein that can be shed enzymatically to release a soluble growth factor. Ectodomain shedding is essential to the biological functions of HB-EGF and is strictly regulated. However, the mechanism that induces the shedding remains unclear. We have recently identified nardilysin (N-arginine dibasic convertase (NRDc)), a metalloendopeptidase of the M16 family, as a protein that specifically binds HB-EGF (Nishi, E., Prat, A., Hospital, V., Elenius, K., and Ectodomain shedding is an irreversible post-translational modification that releases the extracellular domain of membrane-anchored proteins through proteolysis. A broad spectrum of membrane proteins are susceptible to ectodomain shedding. Ectodomain shedding of most proteins occurs constitutively in resting cells, but can be rapidly and markedly induced by cell activation. However, the mechanism that induces shedding remains unclear (1-4).Heparin-binding epidermal growth factor-like growth factor (HB-EGF) 2 is synthesized as a transmembrane protein (pro-HB-EGF) that can be shed proteolytically to release a soluble growth factor (5-8). Metalloproteinases have been implicated as sheddases of pro-HB-EGF because various metalloproteinase inhibitors inhibit HB-EGF ectodomain shedding efficiently. MMP3 (matrix metalloproteinase-3), MMP7, ADAM9 (a disintegrin and metalloproteinase-9), ADAM10, ADAM12, and ADAM17 (tumor necrosis factor-␣-converting enzyme (TACE)) have all been suggested as the proteases responsible (9 -14). Ectodomain shedding of pro-HB-EGF is induced by various stimuli, including phorbol esters, calcium ionophore, and lysophosphatidic acid (6,15,16). With respect to the mechanism of the induction, however, very little is known.Ectodomain shedding of HB-EGF is indispensable for G-protein-coupled receptor-induced epidermal growth factor receptor (EGFR) transactivation, which plays critical roles in biological consequences of G-protein-coupled receptor activation (17). The physiological significance of HB-EGF ectodomain shedding was further underscored by the findings that knock-in mice harboring an uncleavable mutant construct of HB-EGF show phenotypes very similar to those of HB-EGF knock-out mice (e.g. hypertrophied cardiac valve and dilated heart) and that knock-in mice with the soluble mutant have even more severe phenotypes (18 -20). Notably, a similarly defective valvulogenesis was observed in both EGFR-and TACE-deficient mice, suggesting that HB-EGF-induced EGFR activation and TACE-induced HB-EGF shedding are required for valvulogenesis (19,21). In other words, ectodomain shedding of pro-HB-EGF is required for the activation of EGFR by HB-EGF. The same conclusion was obtained in a study that showed that most of the biological effects of EGFR ligands in cell culture are blocked by metalloprotease inhibitors (22). 2 The abbreviations used are: HB-EGF, heparin-binding epidermal growth factor-like...