The pituitary cell line, AtT-20, synthesizes the precursor to corticotropin (adrenocorticotropic hormone; ACTH) and 13-endorphin and correctly glycosylates and cleaves it to make the mature forms of the hormones before they are secreted. This cell line was used to study the intracellular transport, packaging, and secretion of these hormones. Secretory granules from the cells were isolated by homogenization and differential centrifugation and isopycnic sedimentation on a 2H20-Ficoll gradient to give a preparation having a specific activity of 90 ,.g ACTH per mg of protein, which is 30-to 90-fold greater than that of whole cells. The granules have density characteristics and a sedimentation coefficient that are appropriate for spheres of 1000 A radius. They contain all of the fragments of the initial ACTH/endorphin precursor but almost undetectable amounts of the intact precursor. The fragments constitute about 50% of the protein in the secretory granule fraction and, from density measurements, we estimate that they are present in -60,000 copies per vesicle. The cell line secretory granules appear, therefore, to be similar to mature secretory granules in normal differentiated tissues. ACTH first appears in the secretory granule at 30-45 min after synthesis. Cleavage of the precursor to mature ACTH occurs at about the same time in the whole cell. Therefore, proteolysis of the prohormone to ACTH and to P-lipotropin is a metabolic event that can be correlated with the packaging of the hormone into a mature secretory granule. Cleavage of f-lipotropin to (3-endorphin occurs later, probably in the secretory granule.Morphological studies of highly differentiated secretory tissues such as the pancreas and the parotid gland have delineated the intracellular route oftransport ofproteins destined for secretion (1). Secretory proteins are synthesized at the rough endoplasmic reticulum, transported to the Golgi apparatus or the condensing vacuole for packaging into mature secretory granules, and then discharged from the cell by exocytosis. The molecular events underlying this process are poorly understood. It is not known how the secretory proteins are segregated and packaged into secretory granules or how specific granule membrane components are acquired. The nature of the recognition event whereby appropriate membranes fuse during transport and secretion remains obscure.Highly structured tissues such as the pancreas are optimal for morphological studies, but the use of cell lines for the study of biochemical processes is advantageous-e.g., a cell line that retains normal secretory functions could be used to study the molecular events involved in packaging and secretion of proteins. We chose the mouse pituitary cell line AtT-20 as a model secretory system because these cells retain many important biochemical and physiological properties of pituitary corticotrophs. The biosynthetic pathways of the major secretory products-corticotropin (adrenocorticotropic hormone; ACTH), ,B-lipotropin (f3-LPH), and B-endorphin, in th...