The nucleotide sequence of the tcmIII, tcmIc, and tcmVII region of the tetracenomycin (TCM) C gene cluster of Streptomyces glaucescens ETH 22794 (GLA.0) revealed the presence of two genes, tcmP and tcmG. The deduced product of tcmG resembles flavoprotein hydroxylases found in several other bacteria, whereas the predicted amino acid sequence oftcmP is not significantly similar to those of any known proteins in the available data-bases. Southern blot hybridization revealed an approximately 180-bp deletion in a tcmIII (tcmG) mutant and a 1,800-bp insertion in a tcmVII (tcmP) mutant. Heterologous expression oftcmG and tcmP in Streptomyces lividans and tcmP in Escherichia coli established that tcmP encodes an O-methyltransferase, catalyzing the methylation of the C-9 carboxy group of TCM E to yield TCM A2, and that tcmG is responsible for the hydroxylation of TCM A2 at positions C-4, C-4a, and C-12a to give TCM C. These are the final two steps of TCM C biosynthesis.Polyketides represent a large family of natural products produced by bacteria, fungi, and plants (29). Considerable interest has been directed into analyzing the biosynthesis of these compounds because of their importance as antibiotics, chemotherapeutics, flavoring agents, and pigments. Understanding the biochemical basis of antibiotic production, in particular, is crucial to establishing rational means for engineering hybrid antibiotic producers (32) or performing tasks like targeted gene disruption that yield a specific and desired product (62). It has been demonstrated that aromatic polyketides like tetracenomycin (TCM) C are synthesized by a type II polyketide synthase (33) that consists of a multiprotein complex (6,22,56). The polyketide backbone of such molecules is subsequently modified by a number of different enzymes, resulting in a vast array of structurally diverse metabolites (29). As a part of the study of the genetics and biochemistry of the formation of the anthracycline antibiotic TCM C (63), we analyzed a region of the tcm cluster (Fig. 1A) characterized by three phenotypically different types of mutants (42,43,45). On the basis of the structure of the compounds accumulated by the Streptomyces glaucescens GLA.0 type III and type VII mutants, it was concluded that this region codes for enzymes that catalyze the last two steps of the TCM C pathway (45). Type III mutants appeared to be blocked in the hydroxylation of TCM A2, whereas type VII mutants were unable to methylate the C-9 carboxy group of TCM E (Fig. 1B) (43), and pTrc99c (1) plasmids are described elsewhere. The ermE* promoter (24) was isolated from pIJ4070 (5). pUC19 was purchased from New England Biolabs (Beverly, Mass.). The Escherichia coli strains used were JM105 and DH5ac (54). The construction of the plasmids used in this study is described in Table 1.Culture conditions and chemicals and other materials. R2YENG liquid medium (pH 6) and agar plates (45, 57) were used for production of TCM C and elloramycin as well as its biosynthetic intermediates. S. glaucescens spores wer...