Growth of embryonic chicken sternal chondrocytes in the presence of phorbol-12-myristate-13-acetate (PMA), a potent tumor promoter, resulted in a dramatic morphological change from spherical floating cells to adherent fibroblastic cells. This morphological change was accompanied by a quantitative switch from synthesis of cartilage-specific type II procollagen to type I procollagen. Type II procollagen mRNA levels decreased 10-fold in PMA-treated cells. Activation of type I collagen genes led to the accumulation of type I procollagen mRNA levels comparable to those of type H mRNA in these cells. However, only type I procollagen mRNA was translated. In addition to gene activation, unprocessed pro al(l) transcripts present at low levels in control chondrocytes were processed to mature mRNA species. Redifferentiation of PMA-treated chondrocytes was possible if cells were removed from PMA after the morphological change and cessation of type H procollagen synthesis but before detectable amounts of type I procollagen were synthesized. Production of type I collagen thus marks a late phase of chondrocyte "dedifferentiation" from which reversion is no longer possible. Redifferentiated cell populations contained 24-fold more pro al(II) collagen mRNA than pro al(I) collagen mRNA, but the rates of procollagen synthesis were comparable. This suggests that the PMA-mediated dedifferentiation of chondrocytes as well as their redifferentiation is under both transcriptional and posttranscriptional regulation.In vivo and in vitro, differentiated chondrocytes secrete and are imbedded in an extracellular matrix composed of type II collagen (16,36,44,50), several minor collagens specific to hyaline cartilage (33), and chondrocyte-specific type IV sulfated proteoglycans (14,20). The latter can be identified because they stain with toluidine blue (13). Chondrocytes in culture are either spherical and remain in suspension or attach to the culture dish and assume a characteristic polygonal morphology (50). When subcultured in monolayer, the cells gradually assume a more fibroblast-like morphology. Morphological changes are followed by a decrease in the expression of the chondrocyte matrix components, including type II collagen and type IV sulfated proteoglycans. Concomitantly, low levels of type I collagen and fibronectin, characteristic of the extracellular matrix of fibroblasts in skin, bone, and tendons are produced. These changes are not the result of overgrowth by contaminating fibroblasts since the switch from type II to type I collagen production can be observed in the progeny of a cloned chondrocyte (10,15,34). The failure to continue to produce the differentiated phenotype led to the characterization of this switch as "dedifferentiation" (22). This is not meant to imply that the cells had returned to an uncommitted or multipotent state, but rather that adverse environmental conditions have interrupted the expression of the differentiated phenotype, somewhat like the heat shock effect. As a result, the cells either revert to an ea...