Midkine is a 13-kDa heparin-binding growth factor with 45% sequence identity to pleiotrophin. Pleiotrophin has been demonstrated to bind to protein-tyrosine phosphatase (PTP ) with high affinity. In this study, we examined the binding of midkine to PTP by solidphase binding assay. Midkine and pleiotrophin binding to PTP were equally inhibited by soluble pleiotrophin and also by some specific glycosaminoglycans. For both bindings, Scatchard analysis revealed low (3.0 nM) and high (0.58 nM) affinity binding sites. These results suggested that PTP is a common receptor for midkine and pleiotrophin. Midkine is structurally divided into the Nand C-terminal halves, and the latter exhibited full activity for PTP binding and neuronal migration induction. The C-terminal half contains two heparin-binding sites consisting of clusters of basic amino acids, Clusters I and II. A mutation at Arg 78 in Cluster I resulted in loss of the high affinity binding and reduced neuronal migration-inducing activity, while mutations at Lys 83 and Lys 84 in Cluster II showed almost no effect on either activity. Chondroitinase ABC-treated PTP exhibited similar low affinity binding both to the native midkine and midkine mutants at Arg 78 . These results suggested that Arg 78 in midkine plays an essential role in high affinity binding to PTP by interacting with the chondroitin sulfate portion of this receptor.PTP /RPTP 1 is a receptor-like protein-tyrosine phosphatase, which is abundantly expressed in the central nervous system as a chondroitin sulfate proteoglycan (1-4). PTP is composed of an N-terminal carbonic anhydrase-like domain, a fibronectin type III domain, a serine, glycine-rich domain that is thought to be chondroitin sulfate attachment region, a transmembrane segment, and two tyrosine phosphatase domains (1, 2). There are three splice variants of this molecule: (a) the full-length PTP (PTP -A); (b) the short form of PTP , in which most of the serine, glycine-rich region is deleted (PTP -B); and (c) the secreted form (PTP -S), which corresponds to the extracellular region of PTP -A and is also known as 6B4 proteoglycan/phosphacan (3, 5). All these splice variants are expressed as chondroitin sulfate proteoglycans in the brain (6), suggesting that chondroitin sulfate plays an essential role in receptor function.Several proteins such as contactin, tenascin, L1, NCAM, and TAG1 have been reported to bind PTP (7-9). Contactin is thought to be a neuronal receptor of PTP expressed on glial cells (7). Recently, we found that PTP binds with pleiotrophin/ heparin-binding growth-associated molecule (10), in that a chondroitin sulfate portion of PTP constitutes a part of the pleiotrophin binding site and regulates the affinity of PTPpleiotrophin binding (10). We further demonstrated that pleiotrophin-induced neurite outgrowth and neuronal migration were suppressed by chondroitin sulfate, polyclonal antibodies against the extracellular domain of PTP , and sodium vanadate, a protein-tyrosine phosphatase inhibitor. These findings suggested that P...