Coagulation factor IX is a serine protease for which high-level expression of biologically active protein in heterologous cells is limited due to inefficient proteolytic removal of the propeptide as well as vitamin K-dependent carboxylation of multiple amino-terminal glutamic acid residues. We have overexpressed the vitamin K-dependent y-carboxylase cDNA and monitored its ability to improve factor IX processing in Chinese hamster ovary (CHO) cells. From amino acid sequence analysis of bovine liver vitamin K-dependent y-carboxylase, degenerate oligonucleotides were used to isolate a 3.5-kbp bovine cDNA that encoded a 758-residue open reading frame. Expression of the cDNA in COS-1 and CHO cells yielded 17-and 16-fold increases in the in vitro y-carboxylase activity of microsomal preparations, respectively. Antiserum raised against a predicted peptide sequence reacted with a 94-kDa polypeptide in the partially purified bovine liver preparation as well as in stably transfected CHO cells. The amount of antibody reactivity correlated with the increased ability to carboxylate a peptide substrate in vitro. These results strongly support the conclusion that the cDNA encodes the vitamin K-dependent y-carboxylase. Transient transfection of the y-carboxylase expression vector into factor IX-expressing CHO cells did not improve the specific procoagulant activity of secreted factor IX. In contrast, transfection of an expression vector encoding the propeptide processing enzyme PACE (paired basic amino acid cleaving enzyme) did improve the specific activity of secreted factor IX by 3-fold. These results demonstrate that the ability of CHO cells to modify glutamic acid residues to y-carboxyglutamic acid in secreted factor IX is not limited by the expression of the vitamin K-dependent y-carboxylase alone.The vitamin-K dependent plasma proteins contain t-carboxyglutamic acid residues that are required for these proteins to attain a calcium-dependent conformation, which promotes interaction with phospholipid surfaces that is essential for their function (1, 2). Analysis of recombinant coagulation factor IX expressed in Chinese hamster ovary (CHO) cells revealed that the protein had a much lower specific activity compared to the natural human plasma-derived protein. The reduced specific activity was attributed to the limited ability of CHO cells to cleave the propeptide of factor IX as well to efficiently perform y-carboxylation of glutamic acid residues (3, 4). To overcome these limitations, we have engineered CHO cells that are capable of efficient propeptide processing. Previously we identified a propeptide cleaving enzyme, PACE (paired basic amino acid cleaving enzyme)/furin, that when overexpressed in CHO cells facilitates propeptide cleavage even when the recombinant protein is being expressed at very high levels (5, 6). The vitamin K-dependent y-glutamylcarboxylase converts glutamate residues to -carboxyglutamyl (Gla) residues (7,8). In an attempt to overcome the limited capacity of CHO cells to y-carboxylate the vita...