The initial cloning of receptor protein tyrosine phosphatases (RPTPs) was met
with excitement because of their hypothesized function in counterbalancing receptor
tyrosine kinase signaling. In recent years, members of a subfamily of RPTPs with
homophilic cell-cell adhesion capabilities, known as the R2B subfamily, have been shown to
have functions beyond that of counteracting tyrosine kinase activity, by independently
influencing cell signaling in their own right and by regulating cell adhesion. The R2B
subfamily is composed of four members: PTPmu (PTPRM), PTPrho (PTPRT), PTPkappa (PTPRK),
and PCP-2 (PTPRU). The effects of this small subfamily of RPTPs is far reaching,
influencing several developmental processes and cancer. In fact, R2B RPTPs are predicted
to be tumor suppressors and are among the most frequently mutated protein tyrosine
phosphatases (PTPs) in cancer. Confounding these conclusions are more recent studies
suggesting that proteolysis of the full-length R2B RPTPs result in oncogenic extracellular
and intracellular protein fragments. This review discusses the current knowledge of the
role of R2B RPTPs in development and cancer, with special detail given to the mechanisms
and implications that proteolysis has on R2B RPTP function. We also touch upon the concept
of exploiting R2B proteolysis to develop cancer imaging tools, and consider the effects of
R2B proteolysis on axon guidance, perineural invasion and collective cell migration.