BCR-ABL is a chimeric oncogene generated by translocation of sequences from the chromosomal counterpart (c-ABL gene) on chromosome 9 into the BCR gene on chromosome 22, Alternative chimeric proteins, BCR.ABLp(190) and BCRABLp(210), are produced that are characteristic of chronic myelogenous leukemia (CML) and Philadelphia chromosome-positive acute lymphoblastic leukemia (Ph-1-ALL). In CML, the transformation occurs at the level of pluripotent stem cells, However, Ph-1-ALL is thought to affect progenitor cells with lymphoid differentiation. Here we demonstrate that the cell capable of initiating human Ph-1-ALL in non-obese diabetic mice with severe combined immunodeficiency disease (NOD/SCID), termed SCID leukemia-initiating cell (SL-IC), possesses the differentiative and proliferative capacities and the potential for self-renewal expected of a leukemic stem cell, The SL-ICs from all Ph-1-ALL analyzed, regardless of the het-erogeneity in maturation characteristics of the leukemic blasts, were exclusively CD34(+) CD38(-), which is similar to the cell-surface phenotype of normal SCID-repopulating cells. This indicates that normal primitive cells, rather than committed progenitor cells, are the target for leukemic transformation in Ph-1-ALL. (C) 2000 by The American Society of Hematology.