The fungal metabolite balanol is a potent inhibitor of protein kinase A (PKA) and protein kinase C (PKC) in vitro that acts by competing with ATP for binding (K i ϳ 4 nM); congeners of balanol show specificity for PKA over PKC. We have characterized the effects of balanol and 10Љ-deoxybalanol in intact cells to determine whether these compounds cross the cell membrane and whether the potency and specificity noted in vitro are preserved in vivo. In neonatal rat myocytes and cultured A431 cells transiently transfected with a cyclic AMP response element-luciferase reporter construct, balanol inhibits the induction of luciferase activity by isoproterenol, indicating inhibition of PKA. Western analysis shows that both balanol and 10Љ-deoxybalanol reduce phosphorylation of cAMP response element-binding protein in isoproterenol-stimulated A431 cells; inhibition is concentration dependent with an IC 50 value of ϳ3 M. Balanol, but not 10Љ-deoxybalanol, inhibits phosphorylation of the myristoylated alanine-rich C kinase substrate protein, a PKC substrate, in phorbol ester-stimulated A431 cells (IC 50 ϳ 7 M). Our data demonstrate that balanol is a potent inhibitor of PKA and PKC in several whole-cell systems and causes no obvious toxicity. In addition, balanol congeners inhibit PKA and PKC with the specificity and potency predicted by in vitro experiments.Balanol is a fungal metabolite produced by Verticillium balanoides (Kulanthaivel et al., 1993). The parent structure and a number of congeners (Fig. 1A) have been synthesized chemically (Lampe et al., 1994, Nicolaou et al., 1994. We have found that balanol is a potent inhibitor of cyclic AMP (cAMP)-dependent protein kinase (PKA) and protein kinase C (PKC) but not of two tyrosine protein kinases, pp60 src and the epidermal growth factor receptor kinase (Koide et al., 1995;Setyawan et al., 1999). In in vitro assays with purified components, balanol inhibits protein kinase activity by competing with ATP for binding at the enzyme's catalytic site (Koide et al., 1995). In fact, balanol interacts with PKA and PKC with an affinity (K i ϭ 4 nM) that is more than three orders of magnitude greater than that for ATP (Koide et al., 1995). We have recently taken advantage of the high affinity of the balanol-kinase interaction to isolate and analyze the structure of a crystal of the balanol-PKA complex, confirming that balanol binds in the ATP cleft of the catalytic core of PKA (Narayana et al., 1999).Minor modification of the balanol structure produces congeners that exhibit substantial specificity toward PKA over PKC. For instance, 10Љ-deoxybalanol (Fig. 1A) inhibits PKA with a K i value of 4 nM and PKC with a K i value of 640 nM in studies with purified enzymes in vitro (Koide et al., 1995;Setyawan et al., 1999). These data suggest that balanol might be a useful template on which a family of specific protein kinase inhibitors can be developed. However, biologically useful inhibitors need to enter cells and have desired effects at modest concentrations that do not injure the ...